FBiH Government Adopts Additional Measures to Help the Economy

SARAJEVO, (Patria) - The Government of the Federation of BiH, at today's continuation of its 222nd session in Sarajevo, accepted information on its measures in the fight against the consequences of the pandemic.

The information stated that the Federation of BiH is the only one in Europe that will cover almost two-thirds of the total employed with its economic support measures program. According to estimates, 350,000 employees will benefit from subsidies, which is 68 percent of the total number. The Federal Government was the first to start preparations in January and react to the appearance of the virus and the movement of tourists from China.

In a very short period, it established a web portal, online monitoring of the pandemic's spread - covid-19.ba/map, and provided the necessary equipment for the healthcare system.

Regardless of a far more complex system compared to the countries in the region, the FBiH was the first to adopt the Budget Rebalance, in which all payments for social categories, all benefits, and pensions remained unchanged.

The uncontrolled price increase in the conditions of global market disruption was prevented, with frozen margins and certain maximum margins for fuel, which led to a significant reduction in fuel prices.

Companies owned by the FBiH provided support to the healthcare and education systems by purchasing equipment, as well as free internet for children to attend online classes. In total, the Government of the Federation of BiH has so far adopted 53 measures to mitigate the consequences of the coronavirus epidemic.

One of the measures adopted today is the continuous analysis and reporting by the Government of the FBiH on macroeconomic trends and their impact on budget revenues. Continuous monitoring of macroeconomic movements and analysis of their impact on the stability of budget and extrabudgetary fund revenues are key to assessing the consequences of macroeconomic movements and the possibilities for timely and adequate reaction to deviations and trends that could threaten the stability of budget and extrabudgetary funds. This ensures timely and smooth implementation of planned measures, as well as regular payments to all categories, especially pensioners, the veteran population, and other social categories, as well as agricultural incentives.

It is necessary to finalize the activities related to the activation of the Guarantee Fund as soon as possible, both in terms of prescribed conditions and operating methods, and the target groups that will be beneficiaries of the guarantees. The Guarantee Fund is established at the Development Bank of FBiH, and its main goal is to support the maintenance of the achieved level of economic activity through ensuring current liquidity, working capital, and investments for business entities, it was announced from the Government of FBiH.

Monitoring the effects of the Law on Mitigating Negative Economic Consequences is a necessary activity in order to systematically monitor the effects on subsidy beneficiaries. It is particularly necessary to monitor the movement of the number of employed and unemployed persons, as well as other effects on the operations of the entire economy. Bearing in mind global trends and the current situation regarding access to credit funds, it is necessary to maintain regular contacts and continue discussions with domestic and international creditors to ensure access to credit funds in accordance with the needs of both the economy and various levels of government.

One of the measures is the continuation of public investment implementation. Line ministries, in cooperation with public enterprises and business companies with state capital participation that are implementing significant investments, should maximally accelerate processes and the implementation of investment funds with the aim of increasing consumption and stimulating the business cycle.

All measures to help the economy should be harmonized to the greatest extent possible with lower levels of government, for more efficient access and to ensure timely and targeted support to the economy.

Following the emergency measures, which are covered by Government decisions and the Law on Mitigating Negative Economic Consequences, it is necessary to prepare an Economic Recovery Concept as soon as possible, which will aim to achieve and maintain macroeconomic stability, as well as create prerequisites for sustainable and accelerated economic growth. In accordance with these measures, specific assignments were also given today.

The Federal Ministry of Finance is tasked with continuously analyzing the trends of available macroeconomic indicators, including revenues from indirect and direct taxes, in order to ensure the financial stability of budget and extrabudgetary funds, and to report to the Government of the FBiH on the estimated effects on a monthly basis.

The Coordination Board for Economic Stabilization and the Consequences of the Coronavirus Pandemic is tasked with completing all activities related to the establishment of the Guarantee Fund at the Development Bank of FBiH as soon as possible, which aims to provide current liquidity, working capital, and investments for business entities. It is also tasked with monitoring and analyzing the implementation of the Law on Mitigating Negative Economic Consequences, with a focus on the trends in the number of employed and unemployed persons, and reporting to the Government of the FBiH monthly.

The Federal Ministry of Finance is tasked with continuing discussions with international and domestic creditors regarding the potential for lending to both the economy and various levels of government.

Line ministries are obliged to, in cooperation with public enterprises, maximally accelerate the implementation of investment funds with the aim of increasing consumption and stimulating the business cycle. The Coordination Board for Economic Stabilization and the Consequences of the Coronavirus Pandemic is tasked with monitoring aid measures for the economy at lower levels of government and proposing harmonization of measures to the Government of the FBiH, with the aim of more efficient access. It is also obliged to propose an Economic Recovery Concept as soon as possible, with the aim of achieving and maintaining macroeconomic stability, as well as creating prerequisites for sustainable and accelerated economic growth.

Today, the Prime Minister of the Federation of BiH was authorized to submit information on the measures of the Government of FBiH in the fight against the consequences of the pandemic, with an overview of the submitted procurement information according to the conclusion of April 30, 2020, to the Parliament of FBiH.

Information on the measures of the Federal Government in the fight against the consequences of the pandemic, with reports from federal administrations, federal administrative organizations, federal ministries, and other federal institutions on public procurement procedures carried out since the adoption of the Decision on declaring a state of disaster caused by the appearance of coronavirus (COVID-19) in the territory of the Federation of BiH, will be published on the website of the Government of FBiH.