‘’No matter how favorable conditions of the loan are, and they are still not public, it is a loan which has to be returned, with interests’’, said Gavran.
He explained that if conditions of execution of credit arrangements are confirmed to be extremely favorable, and all approved funds are used quickly and efficiently, and restoration and reconstruction are completed successfully within a reasonable deadline, ‘’then we can assess results of the so called donor conference as successful’’.
‘’BiH will mostly help itself in the long term by strengthening economy, which faced many obstacles even before the floods. Measures that need to be taken are in many demands and initiatives of economy and economic experts, and they need to be implemented as soon as possible’’, finds Gavran.
Therefore he said that VTKBiH prepared and delivered to the competent authorities Proposal of measures to improve business environment: BH economy – Opportunities and challenges, which includes series of measures and activities to improve conditions of doing business in BiH.
‘’These proposals were taken into consideration during making of the recently presented ‘Agreement for growth and employment in BiH’, whose implementation is also supported by the international community. Key elements are reduction of fiscal and parafiscal burdens of business activities, efficient administrative support to economy, reformed labor legislation and health and social protection system, rationalization of public spending, etc.’’, emphasized Gavran.
He added that implementation of these necessary economic reforms would enable BiH to expect domestic and foreign investments and growth of production, employment and export instead of international donations and higher debts.
‘’When it comes to current restoration needs, rationalization of public spending could facilitate and accelerate restoration and reduced the need to use loans’’, said Gavran.
Asked how much time BiH will need to recover from flood consequences, given the damage was assessed to 3.98 billion KM and considering the mentioned donations, he said it will take a longer period for complete and sustainable recovery.
‘’Examples of regulated and efficient states such as Japan show that consequences of the most difficult disasters are being repaired in record period of time. BiH missed great chance in post-war period to build foundations for long-term sustainable development’’, said Gavran.
He emphasized that experience ‘’must be additional encouragement to accelerate recovery and reconstruction process and use it to encourage the overall economy of BiH’’.
‘’These significant funds which were secured in a short period and hiring primarily domestic companies for works and procurement of necessary products, hiring domestic workforce would result in overall growth of economic activity and it would create foundations for faster economic development in period after restoration’’, finds adviser for Macroeconomic system of VTKBiH Igor Gavran.
He said that given the range of approved funds, number of unemployed persons in BiH and low level of consumption of economic capacity, ‘’potential for restoration is indisputable, and it is responsibility of the competent authorities to make sure it happens quickly and efficiently’’.
(Source: Fena/ photo mojevijesti)