According to the report on the assessment of the need for rehabilitation, conducted by B&H government with the support of EU, UN and World Bank, the final amount needed for rehabilitation is approximately four billion BAM.
“We now expect that the final assessment report to be finalized during the next two weeks”, said at a press conference in Sarajevo, the spokesperson of EU Delegation to B&H Andy McGuffie. McGuffie said that one of the things on which EU will put emphasis in the coming weeks is the importance and effectiveness of the rapid use of donor funds that are available.
“On the way is a certain amount of funds from the EU, about 42 million euros from IPA funds that are currently in the process of decision-making”, said McGuffie.
Team Leader and Coordinator for assessing the need for remediation on behalf of the EU Ricardo Zapata Marti said that the extent of the damage in the amount of four billion BAM have consequences on macroeconomic indicators of B&H, but we should remember that the economy of B&H even before the floods did not grow fast.
“According to the estimates of the national institutions, will now be recorded a decline in GDP. From the previous growth of 2.2 per cent predicted by IMF will come to fall to -1.1 percent by the end of the year”, said Zapata Marti.
He added that it will have a series of consequences and some sectors will be more affected than others. “One of the sectors most affected is agriculture, and there will be an increasing trade deficit, which will increase the rate of 10 per cent of GDP. This negative growth will again increase the fiscal deficit. This will cause a financial gap with which authorities of B&H will have to face in the coming period until the end of the year”, said Zapata Marti.
“However, it is necessary to recognize that the very nature of this disaster reveals a need for greater resistance and energy efficiency, and all that could strengthen the country’s competitiveness and accelerate job creation and greater prosperity in the future “, stated Zapata Marti.
According to Zapata Marti, the damage is approximately 60 million euro in Brcko district, and the rest is almost equally divided between the two entities, RS and the Federation of B&H.
(Source: Fena)
