FBiH Government: No Marka of Donations Paid into the Budget

The Government of the Federation of Bosnia and Herzegovina is fully committed to transparent work and the desire to carry out all activities related to remedying the consequences of the natural disaster with as little political interference as possible, fully aware that we are in the pre-election period, it was announced from the FBiH Government, reports the Bosnian news agency Patria.

From the FBiH Government, they explain that not a single convertible mark of any donations intended for remedying the consequences of the natural disaster has been paid into the Budget of the Federation of Bosnia and Herzegovina to date.

- Stories about some hundreds of millions of marks of donated funds paid into the accounts of the FBiH are a complete fabrication, representing a classic abuse of public space. The money that was promised as aid to BiH at the July donor conference has not yet been paid into the FBiH Budget in any amount - it was announced.

IMF MONEY

As they explained, the only financial resources that have been paid into the FBiH Budget so far, with the purpose of aiding in remedying the consequences of the natural disaster, are 92 million KM of additional credit funds paid by the International Monetary Fund.

This money, by a decision of the Parliament of FBiH, and at the proposal of the Government, was allocated in the second rebalancing of the FBiH Budget for 2014 so that 25 million KM was transferred to the Federal Pension and Disability Insurance Fund for maintaining liquidity and regular payment of pensions, which was recorded as repayment of verified debt to the Pension and Disability Insurance Fund, 27 million KM is provided in the Budget for remedying the drop in indirect tax revenues, and 40 million KM was made available to the cantons under conditions prescribed by the IMF.

Before that, the first rebalancing of the FBiH Budget for 2014 provided emergency aid in the amount of 10 million KM, which was sent in two installments to municipalities and cantons, and an additional 10 million KM for the Civil Protection of FBiH, and 4.4 million KM in the reserve of the FBiH Budget intended for the same purposes.

DECISION ON LOANS

The FBiH Government made a decision on a moratorium on the repayment of subsidiary loans for the Tuzla, Sarajevo, Zenica-Doboj and Posavina cantons in the amount of 54 million KM over a period of three years. These funds are thus freed up for these cantons and can be directed towards reconstruction and remediation needs. It was also stated that all funds from this year's Budget are adapted to reconstruction projects.

- This involves cumulatively some 20 million KM, a good part of which is already being implemented in the field for various purposes. For example, the programs of the Federal Ministry for Displaced Persons and Refugees are directed towards the reconstruction and construction of houses, and the programs of the Federal Ministry of Energy, Mining and Industry for assistance to business entities that suffered damage. Based on these two assistance programs alone, which are already being implemented in the field, more than 12 million KM has been allocated - it was announced from the FBiH Government.

FEDERAL INSTITUTIONS

Activities are continuously carried out by other institutions such as the Federal Administration of Civil Protection, the Environmental Protection Fund of FBiH, the Federal Employment Institute and the Development Bank of FBiH.

- In the Development Bank of the Federation of BiH, based on a decision of the FBiH Government, a special credit line was formed for companies that suffered damage in the floods with conditions that the loan repayment period is 36 months, the interest rate is 2 percent, and the grace period is 6 months. Also, the reprogramming of existing loans was ensured with an additional grace period of 12 months and a five-year extension of the loan repayment period.

In the past three months, the FBiH Government has, through its decisions, ensured, both directly and indirectly, funds of some 100 million KM directed towards assistance in remedying the consequences of the natural disaster, and most of these funds are already operational and being invested in the field.

AID FUND

Three laws have also been adopted whose goal is to create a framework for activating all domestic resources and directing them towards programs for remedying the damage suffered due to the natural disaster. The Management Board of the Federal Fund for Aid to Areas Affected by Natural Disaster made decisions on directing 9 million KM collected in a special donor account of the Fund. Of this amount, 4 million KM were transferred to municipalities for the purpose of reconstructing damaged residential buildings for beneficiaries selected by the municipalities. Two million KM were allocated in equal amounts to the Tuzla and Zenica-Doboj cantons for the construction of houses for families whose houses were destroyed by landslides, selected by cantonal and municipal authorities. Two million KM were allocated for assistance to small business entities to be selected by the competent institutions of the cantons that suffered damage in the May and August floods, while one million KM was set aside for infrastructure reconstruction projects and will be implemented based on projects prepared by the competent cantonal and municipal authorities.

WORLD BANK

Activities regarding the operationalization of the World Bank loan of some 47 million KM intended for remedying the damage are being finalized, of which a decision on the allocation of funds to municipalities has already been made for the amount of 15.01 million KM, and it will be paid as soon as the money becomes operational. We emphasize that the FBiH authorities have carried out all necessary activities to make these funds available, but the completion of procedures by the World Bank and lower levels of government is still awaited.

All donor funds that have been directed to BiH so far, based on promises from the donor conference, are being implemented through UNDP in BiH and the authorities of the Federation of BiH are in no way involved in the implementation of these funds.