FBiH Government Adopts Information on Measures for Economic Stabilization and Remediation of Consequences

SARAJEVO, (Patria) - The Government of the Federation of BiH, at today's session in Sarajevo, adopted information on the Program of Activities of the FBiH Government for economic stabilization and remediation of the consequences of the coronavirus pandemic.

The goals of these activities are job preservation, enhanced protection in case of job loss, preservation of the Pension and Disability Insurance (PIO) stability, and preservation of the banking sector stability.

One of the measures is the establishment of a Coordination Board for economic stabilization and remediation of the consequences of the coronavirus pandemic, which was done based on the conclusion of the Economic and Social Council for the territory of FBiH. The Coordination Board consists of relevant federal ministers, headed by the federal minister Edita Đapo, the FBiH Government announced. Representatives of employers and trade unions, as well as experts, and, if necessary, representatives of cantonal governments, will be included in its work.

The establishment of a special fund for economic stabilization is foreseen, aimed at supporting exporting companies that are facing business problems due to the consequences of the spread of the coronavirus in export markets. In addition, this fund would support companies from other sectors, especially transport and tourism, and others. Funds for financing the fund would be secured from various domestic and foreign sources.

The government will invite cantonal governments and municipal administrations to contribute to this fund, from which funds would be distributed according to jointly established criteria within the Coordination Board.

A guarantee fund will be established to maintain and improve the liquidity of companies whose business operations are found to be threatened by the spread of the coronavirus.

The funds of this fund will mainly consist of commission funds of the FBiH Government with the Development Bank of FBiH.

If necessary, additional funds could be secured by the FBiH Government, as well as by international multilateral and bilateral creditors/donors. Guarantees would be issued through commercial banks based on appropriate contractual arrangements with the Development Bank of FBiH.

The goal of introducing a moratorium on loan repayments is to establish a framework for restructuring credit arrangements of natural and legal persons for whom it is determined that difficult circumstances have arisen for servicing loans due to the spread of the coronavirus.

Taking into account the valid legal framework on the independence of the Banking Agency of FBiH, the Government will request this institution, as well as competent state bodies, to adopt regulatory measures to ensure a moratorium on repayment and restructuring of credit arrangements. In addition to this, a moratorium on the payment of credit obligations to users (whose business is threatened due to the spread of the coronavirus) of the so-called permanent revolving fund with banks that administer it will be ensured.

The FBiH Government will task the Development Bank of FBiH to, in cooperation with the relevant ministries, prepare a proposal for a decision on establishing a credit line to improve the liquidity of companies whose business operations are found to be threatened by the spread of the coronavirus.