International Financial Institutions Express Readiness to Help Mitigate Effects of Natural Disaster

(Patria) - The Government of the Federation of BiH, at today's continuation of its 43rd session, was informed about the possibility and readiness of international financial institutions for financing recovery from floods.

Namely, the Federal Ministry has explored the possibilities and readiness of international financial institutions to provide technical and financial assistance for conducting a framework needs assessment for recovery and reconstruction, and identifying potentials, following the natural disaster caused by flash floods and landslides that hit Jablanica, Konjic, Fojnica, Kreševo, and Kiseljak at the beginning of October this year.

The information stated that the Council of Europe Development Bank (CEB), the European Investment Bank (EIB), and the World Bank have expressed readiness to assist the Government of the Federation of BiH in mitigating the effects caused by the natural disaster and have offered certain forms of assistance, i.e., financial instruments that could be used in such situations.

In addition to standard investment loans, in circumstances of natural disasters, these international financial institutions have somewhat more lenient credit terms for new credit arrangements, which are reflected in shorter approval procedures, shortened public procurement procedures, and the possibility of increased retroactive financing for eligible project expenditures.
A review of the current portfolio of projects financed by the World Bank identified three projects within which, through the reallocation of funds or restructuring of projects, available funds could be directed towards urgent activities.

After being informed, the Government tasked the Federal Ministry of Agriculture, Water Management, and Forestry to, in cooperation with the World Bank, identify available funds that could be redirected from the Sava and Drina Rivers Corridor Integrated Development Project and the Agricultural Competitiveness and Resilience Project, through reallocation, towards eligible expenditures for financing urgent flood recovery measures in the agriculture and water sector, or through restructuring into a potential CERC component - Emergency Response to Unforeseen Emergencies.

The Government also tasked the Development Bank of the Federation of BiH to, in cooperation with the Federal Ministry of Finance and the World Bank, identify available funds that could be restructured from the Support to Firms Recovery Project and directed towards a potential CERC component - Emergency Response to Unforeseen Emergencies.

Personnel Decisions

The Government of the Federation of BiH gave its prior consent for the appointment of Zoran Zeljko (President), Admir Softić, Mirsada Kadribašić, Mario Gadžić, Safet Sinanović, Mira Vujeva, and Muris Junuzović (members) as acting members of the Supervisory Board of the Development Bank of FBiH, until the completion of the tender procedure, and for a maximum period of three months, starting from the date the Assembly of the Development Bank's decision on appointing acting members of the Supervisory Board comes into effect.

Prior to this, prior consent was given to the Assembly of the Development Bank of FBiH for the dismissal of the current acting members of the Supervisory Board.

Today, the necessary acts were adopted for announcing public tenders for the election and appointment of the Supervisory Board of the Development Bank of the Federation of Bosnia and Herzegovina, and the Management Board of the Financial-Information Agency.