Softić at the Economic and Financial Dialogue between the EU and the Western Balkans and Turkey in Brussels

Governor of the Central Bank of Bosnia and Herzegovina (CBBH) Senad Softić is in Brussels, attending the ministerial meeting on the regular annual economic and financial dialogue between the European Union and the countries of the Western Balkans and Turkey.

The meeting in Brussels represents the conclusion of the consultation and supervision process on the implementation of three-year economic reform programs.

This process has enabled candidate and potential candidate countries from the Western Balkans and Turkey to engage in dialogue and reach common conclusions with EU institutions on economic, fiscal, and structural measures, in a very similar way to how it is conducted for European Union member states (the so-called European Semester). The Western Balkans and Turkey are represented by their finance ministers and central bank governors, while the EU is represented by the finance minister of Malta, as the presiding country of the Council of the European Union, and two ministers from the countries that will preside over the EU Council (Estonia and Bulgaria).

Speaking about the reform process, Governor Softić welcomed the continuation of the ongoing dialogue between the BiH authorities and representatives of the European Union, emphasizing that Bosnia and Herzegovina has strong economic and financial ties with the EU and that further integration of the country will depend on the coordination and understanding of economic policies and structural reforms. On that occasion, he pointed out that during the past period, the authorities have undertaken a series of activities to maintain macroeconomic stability and improve the business environment in the country.

- It should be emphasized the implementation of the Reform Agenda, where a number of activities are being carried out in parallel, with the ultimate goal of improving the business environment, resolving issues related to the labor market, and creating a framework for the sustainability of public finances.

Work has also been done on agreeing and implementing economic measures within the framework of a new program with the International Monetary Fund, which are also aimed at the sustainability of public finances and financial stability. It should also be added that the BiH authorities are in the process of responding to the European Union's Questionnaire, which is largely dedicated to economic policies - said the governor, adding that all the aforementioned activities were carried out in accordance with the recommendations from the Economic and Financial Dialogue and expressed his hope that, despite the large number and scope of tasks, they will be successfully and relatively quickly completed.

During his address, Governor Softić also touched upon economic trends in the previous period, emphasizing that the economy of Bosnia and Herzegovina shows signs of recovery. Given the positive trends in the region, growth and investment are expected to continue in 2017 with low inflation, along with the currency board arrangement, which remains the foundation of stability in our country. The financial sector has remained stable.

The banking sector shows a higher level of capitalization and profitability, and the latest indicators indicating a greater credit expansion are particularly encouraging. It is expected that a series of structural reforms, through job creation and improvement of the business environment, will contribute to reducing unemployment.

The Governor added that the CBBH, in accordance with its mandate, will continue to provide an institutional framework by preserving monetary and financial stability, working on strengthening banking coordination and the role of the Standing Committee for Financial Stability, improving payment systems, enhancing unique registers, providing timely and comprehensive statistics, with an active role of the institution in the EU integration process.

Governor Softić concluded his address by thanking the EU institutions for their continuous support, with the expectation that the dialogue with the EU institutions will continue to play a key role in defining economic policies, as well as legal and institutional reforms, in order to achieve harmonization in the country.