Association of Employers of FBiH: Money from clearing debt should be invested in economy and infrastructure

The Association of Employers of the Federation of Bosnia and Herzegovina strongly opposes the use of funds obtained from the collection of clearing debt from Russia, in the part belonging to FBiH, which amounts to about 72.5 million US dollars, for the reconstruction of the Pension and Disability Insurance Fund (PIO/MIO) and social benefits in FBiH, reports Patria News Agency.

The funds obtained from the collection of clearing debt are the result of economic activities of companies from Bosnia and Herzegovina carried out before the war in the market of the then Soviet Union. Instead of returning these funds to the economy, by strengthening companies in FBiH, building infrastructure facilities such as roads, hospitals, schools, etc., and generating additional value for all citizens of FBiH based on them, it is proposed that they be used to patch budget holes, reconstruct the PIO/MIO Fund, and for social benefits.

The Government of the Federation of Bosnia and Herzegovina must be aware that the use of funds obtained from the collection of clearing debt from Russia will not permanently, but only temporarily, solve the problem of the PIO/MIO Fund and social benefits in FBiH. For a permanent solution to the problems of the PIO/MIO Fund and social benefits in FBiH, essential reforms of the pension and social systems, as well as the tax system of FBiH, are needed, which implies the adoption and implementation of new laws and a new systemic approach to these areas.

Precisely because there has been no progress in implementing these reforms, the International Monetary Fund has not approved the disbursement of the second tranche of the loan of 155 million KM, which has further shaken the budgets in BiH, including the budget of FBiH. Now, attempts are being made to "patch" these budget holes with funds obtained from the clearing debt.

Investing funds generated from the collection of clearing debt into strengthening the real sector of the economy in FBiH and infrastructure is an investment in new technologies, increased exports, increased GDP of the country, which automatically leads to the creation of new jobs, increased collection of indirect and direct taxes, and thus more permanent stabilization of the pension and health funds, as well as more secure social benefits.

Due to all of the above, we insist that the funds that FBiH received from the collection of clearing debt from Russia be returned to those who earned them – the economy of the Federation of Bosnia and Herzegovina. We call on the ministers in the Government of FBiH, the representatives of the authorities in FBiH, to reject another "patching of budget holes" at the expense of the economy, employees, and all citizens of FBiH.