Another 100 million KM for measures to mitigate the economic consequences of the pandemic

The Government of the Federation of BiH, at today's session in Sarajevo, concluded that it will provide another 100,000,000 convertible marks for measures to mitigate the economic consequences of the coronavirus pandemic in the Federation of BiH. The total funds will be distributed based on a unified regulation that the Government will adopt at its next session, and according to the programs of five ministries.
Previously, the Government considered information from the Federal Ministry of Environment and Tourism, the Federal Ministry of Agriculture, Water Management and Forestry, the Federal Ministry of Transport and Communications, and the Federal Ministry of Energy, Mining and Industry, on the consequences of the coronavirus pandemic on the economy of the Federation of BiH, with proposed further measures for their mitigation.

Also, at the initiative of the Federal Ministry of Health, the situation in healthcare was considered, and it was concluded that this sector also needs to be provided with financial assistance due to the great efforts and costs in the fight against the coronavirus pandemic.

Of the total amount, 30,000,000 KM will be allocated for measures to eliminate the consequences for tourism and hospitality. For financial assistance aimed at mitigating the negative economic consequences caused by the occurrence of coronavirus for measures of purchase and export of market surpluses, support for production of agricultural and food products oriented towards export and increasing the competitiveness of domestic production in foreign markets, 10,000,000 KM is foreseen. For measures in the field of road, rail and air transport, 20,000,000 KM is planned, while for maintaining current liquidity, working capital and completion of investments started before the pandemic, 30,000,000 million KM will be directed to companies from the energy, mining and industry sectors, and 10,000,000 KM for healthcare.

The Federal Government also approved the allocation of 20,000,000 KM from the FBiH Budget for 2020 with the aim of increasing the total funds of the Guarantee Fund at the Development Bank of the Federation of BiH.
These funds will be allocated from the position of capital transfers to financial institutions - the Guarantee Fund at the Development Bank of FBiH.

Additional funds for increasing the total funds of the Fund in the amount of 20 million KM are planned in the Budget of the Federation of BiH for 2020. Given that the total funds of the Fund currently amount to 80 million KM, which represents a guarantee potential of 400 million KM, it was necessary to approve an allocation of 20 million KM in order to increase the total funds of the Fund to 100 million KM and ensure a guarantee potential of 500 million KM, which is the total volume of guarantees that will be approved under the adopted credit-guarantee programs of the Government of FBiH.