Around 70 million KM from OdRaz to go to the FBiH budget

Money from the revolving fund of the former government's Foundation for Sustainable Development (OdRaz), which will grow to nearly 70 million KM this year, will be paid into the account of the Federal Ministry of Finance, and from there into the Federation's budget. This is the conclusion reached at the last government session.

Experts had previously warned that this is one of the worst solutions for the fate of the Fund. The money should have been transferred to a special account of Union Bank, which is owned by the Federation, and used to finance the development of small businesses on more favorable terms than those offered by commercial banks.

HDZ BiH was insistent. It demanded that the Federal Ministry of Finance manage the Fund, headed by Minister Jelka Milićev from this party. A political agreement between the coalition partners was not reached, so it was decided that the money would go into the Federation's budget. It will be spent on patching budget holes.

OdRaz was an important foundation of the Government of the Federation of Bosnia and Herzegovina. It was founded in 2001. It was used to implement projects in municipalities across the FBiH, financed by the World Bank and other international institutions. Most often, it involved favorable lending for infrastructure projects important for the entire local community, as well as favorable lending for small and medium-sized enterprises. 

Since Vinko Jakić took over OdRaz in 2013, the Foundation began to collapse, and numerous projects were stopped or completely suspended. It is suspected that Jakić, as the director of the Foundation, committed a series of criminal offenses, abused his official position, which ultimately led to the collapse of the Foundation.

The government abolished OdRaz at the end of April this year, and is now also closing the multi-million OdRaz revolving fund, writes NAP.