Šunje: Central bank of BiH must remain protected, relax prohibition measures

SARAJEVO, (Patria) - Professor of the Faculty of Economics in Sarajevo Aziz Šunje said that he supports the measures of the Government of FBiH, and that the rebalanced budget of 5.5 billion KM provides space for the federal budget to be managed much more rationally. 

"The crisis should be recognized as an opportunity, and this can be an opportunity to rationalize the federal budget and eliminate the burdensome items it has had so far. This is an opportunity to put many things in order, the bankruptcy law, public enterprises, as there is room for maneuver to reduce the budget. Only elements of fiscal policy are available. What is good is that the Central Bank is not touched and it is the guarantor of currency stability, I think the Central Bank must remain and be protected in all aspects. We are fortunate to have a Central Bank in the way we do," said Šunje.

According to him, the stabilization fund will be filled through the rebalanced budget and the borrowing that will follow under not-so-favorable conditions.

"The measures will certainly require some refinement in their implementation and in the distribution of funds, a certain selectivity and a certain analytical approach and full transparency should be ensured, as not all businesses are equally threatened. Everything that is allocated should be transparent and according to objective criteria," explained Šunje.

He states that the prohibition measures that have been adopted have had an effect, but that the relaxation of measures and the creation of conditions for returning to normal life should be considered.

"If we destroy the economy, we destroy lives. We need to see how to relax the situation and how to reintroduce real life. And here we should look for a model from a country similar to us, like Austria. I see no reason why some businesses are not functioning, such as hairdressing salons, with protective measures. Special praise is for the protection of micro businesses through minimum wage and taxes, and to further prepare by activating public works through the construction of highways and the energy sector," concluded Šunje.