The European Bank for Reconstruction and Development (EBRD) has been participating in the development of our country for years. We have counted billions of BAM since the end of the war.
The EBRD recently marked its 25th anniversary in Bosnia and Herzegovina (BiH). During this period, more than 2.83 billion euros were invested in our country, distributed in 200 projects that greatly helped the reconstruction and modernization of the country.
Last year alone, the EBRD provided more than 140 million euros for projects in BiH, supporting infrastructure, the financial sector, and businesses in the real economy, according to the Bank’s final results for this year. Entering 2022 with a series of projects, the EBRD is ready to increase its support to the public infrastructure of BiH, where important projects to improve public transport and water quality are ready to begin as soon as the Government gives the necessary approvals.
The first investment of this bank in BiH, after the end of the war in 1996, was to support the urgent reconstruction of the electricity and telecommunications network. Another early focus of the EBRD was restoring stability in the banking sector. Then, in December 1996, the EBRD approved an investment in the capital of the then Croatian Bank Mostar. Today, the EBRD is expanding credit lines to local banks for further lending to small and medium-sized enterprises and households, and financing enterprises and municipalities.
At the session two days ago, the Presidency accepted amendments to the agreements with the EBRD on grants for financing the section Poprikuse – Nemila and the tunnel Ivan on Corridor Vc, as well as the agreement with the EBRD for water supply in Brcko, and a loan agreement with the International Bank for Reconstruction and Development (IBRD) for a water and sanitation modernization project. Amendments to the grant agreement with the IBRD for the Water and Sanitation Modernization Project for BiH and the Agreement with the European Investment Bank (EIB) for financing the Hospital Project in the Republika Srpska (RS) were also accepted.
The EBRD said two days ago that it expects BiH’s economy to grow by 2.3 percent in 2022, revising earlier projections by 0.7 percentage points. BiH’s economic growth is expected to accelerate by three percent in 2023, according to the EBRD. For the Western Balkans region, the EBRD forecasts 3.2 percent economic growth in 2022, about 0.9 percentage points lower than previously forecast. The new forecasts are based on a series of assumptions about events in the coming months, and therefore have a high degree of uncertainty.
However, we will not receive funds from the EBRD in the foreseeable future. Neither the Council of Ministers nor the State Parliament supported the EBRD Resolution on the imposition of sanctions on Russia and Belarus, which was a condition for obtaining funds. So, we are not excluded, but everything is on hold, and that may take some time.
At the end of the deadline, it was confirmed that Vjekoslav Bevanda spoke about the EBRD resolutions on the imposition of sanctions on Russia and Belarus. However, it is not known how he voted. By supporting the resolution, our country could be saved from possible economic consequences. If they happen, it would be a matter of numerous projects for which we are waiting for funds.
E.Dz.
Source: Federalna
