Sjednice
Council of Ministers of BIH Holds Its 15th Session
09/02/2020
The Council of Ministers of BIH defined a Proposal Loan Agreement (Integrated Development of Sava and Drina Rivers Corridor through Multi-Phased Programmatic Approach) between Bosnia and Herzegovina and the International Bank for Reconstruction and Development, with a Basics for the conclusion thereof.
The loan, allocated to Republika Srpska, amounts to EUR 30 million, and has 32 year repayment term with seven-year grace period.
The aim of the project is to improve flood protection and enable cross-border cooperation at corridors of the rivers Sava and Drina. The Programme first phase is of a regional character and will be implemented in Bosnia and Herzegovina, Serbia and Montenegro.
The Ministry of Finance and Treasury of BIH is charged to provide the Proposal Agreement with its Basics, to the Presidency of BIH for further procedure, with a proposal for the Minister of Finance and Treasury as the signatory thereof.
INITIATIVE FOR IBRD LOAN FOR SUPPORT TO COMPANIES
The Council of Ministers of BIH adopted an Initiative of the Ministry of Finance and Treasury of BIH and appointed a negotiating delegation for conclusion of a Loan Agreement between Bosnia and Herzegovina and the International Bank for Reconstruction and Development for financing of a EUR 56 million Urgent Company Support Project.
The main aim of the Project is to increase companies’ resilience during and after Covid-19 pandemic outbreak, and maintain their operations also to the end of securing working capital and investments to MSMEs in Bosnia and Herzegovina.
The funds will be allocated to Republika Srpska and the Federation of Bosnia and Herzegovina, and exact amounts will be defined at the negotiations.
AGREEMENT WITH EU ON FINANCING BIH ACTION PROGRAMME
The Council of Ministers of BIH defined a Proposal Finance Agreement for 2019 BIH State Action Programme between the EU, represented by the European Commission, and Bosnia and Herzegovina, with Basics for its conclusion.
The estimated amount of the BIH State Action Programme is EUR 85,490,154, and the Agreement defines the EU participation of EUR 81,898,200.
The Programme aims to support political reforms and progressive harmonisation with the EU acquis, in addition to support to economic, social and territorial development. The Programme will be implemented through projects classified at five sectors: namely, Democracy and Governance; Rule of Law and Fundamental Rights; Environmental Protection; Climate and Energy; Transport and Education; and Employment and Social Policy. The realisation term is 12 years, and operative implementation term is six years from taking effect of the Agreement.
The Ministry of Finance and Treasury will provide the Proposal Agreement and its Basics to the BIH Presidency for further procedure, with a proposal for the Director of the Directorate for European Integrations as the BIH signatory thereof.
FUNDING BIH - MONTNEGRO CROSS-BORDER COOPERATION FOR 2019
The Council of Ministers for BIH defined a Proposal 2019 Finance Agreement under 2018-2020 Bosnia and Herzegovina – Montenegro Cross-Border Cooperation Programme between the European Union, Bosnia and Herzegovina, and Government of Montenegro, with Basics for conclusion of the Agreement.
The financing of the 2018-2020 BIH-Montenegro Cross-Border Cooperation Activities Programme for 2019 was planned in amount of EUR 1,411,764.00, based on the Instrument Pre-Accession Assistance (IPA2). The European Union will provide EUR 1,200,000.00 from tis budget, while beneficiaries of the IPA2 programme are not expected to provide any financial contribution.
Contribution to individual projects, in amount of EUR 211,764.00 will be borne by the end beneficiaries.
The Agreement realisation term is 12 years from the date of taking effect thereof, while the term of its operative implementation is six years also from taking effect of the Agreement.
The cross-border cooperation activities refer to the areas of promotion of employment, labour mobility and social and cultural cross-border inclusion, environmental protection and promotion of adaptation to climate changes, support to tourism and cultural and natural heritage.
The Ministry of Finance and Treasury of BIH will provide the Proposal Finance Agreement with Basics for its conclusion to the BIH Presidency for further procedure, with a proposal for Director of the Directorate for European Integrations as the BIH signatory.
CONSIDERABLE FALL OF ECONOMIC ACTIVITIES CAUSED BY COVID-19
The Council of Ministers of BIH adopted a piece of information on macro-economic trends for January-May 2020, prepared by the Directorate for Economic Planning.
The report provides data that BIH made an economic growth of 2.0% in the Q1 this year, relative to the same time period last year, thanks to an increase of domestic demand, i.e. increase of private and to some lesser extent public spending, while gross investments recorded a fall, in comparison to the same period last year. On the other side, a drastic decrease of economic activities with main trade partners, due to global Covid-19 pandemics, also caused the foreign exchange to fall generally.
REMOVED BLOCKAGES FOR DISTRIBUTION OF HUMANITARIAN AID
The Minister of foreign Affairs briefed the Council of Ministers of BIH that blockages were removed and that no obstacles stand on the way of realisation o grant/humanitarian aid of the United Arab Emirates, the Government of Emirates, Dubai, to Bosnia and Herzegovina.
BASE FOR SALARIES ACCOUNTING IN BIH ISNITTUTIONS DEFINED
The Council of Ministers of BIH took the Ministry of Finance and Treasury-proposed decision on the salary base of employees in the Institutions of Bosnia and Herzegovina for year 2020.
The base amount for accounting of salary is KM 475.59, and it was changed in 2012 last time, when decreased from KM 487.10 or 4.5% for the purpose of preserving macro-economic stability.
FOREIGNERS IN BIH GOT 3.183 WORK PERMITS IN 2019
The Council of Ministers of BIH adopted a piece of information by the Ministry of Civil Affairs of BIH concerning the implementation of a decision on quotas of work permits for employment of foreigners in Bosnia and Herzegovina in 2019.
The reports suggests that in 2019 foreigners in BIH were issued total 3.183 work permits, which was an increase for 12.79% relative to 2018. In the Federation of BIH 2.010 work permits were issued or more for 11.3%, in Republika Srpska 1.042 work permits were issued or 18.27 %more, while in the Brčko District of BIH total 131 work permits were issued or 2.96% less than in the previous year.
According to the states of origin, most of the foreigners working in BIH in 2019 came from the Republic of Serbia, Republic of Turkey, People’s Republic of China, Republic of Croatia and Arab Republic of Egypt. Tracking the changes in relation to 2018, the major increase of the work permits issued was for the citizens of the Republic of Turkey, Montenegro and the Kingdom of Saudi Arabia.
According to the qualification structure, in 2019 aa considerable number of foreigners had university degree (1.415 or 44.45%), followed by secondary school graduates (983 or 30.99%) and non-qualified workers (289 or 7.51%), which was almost the identical structure as in the previous years when in question high and secondary education.
Most of work permits issued in 219 was in the following activities: trade (794 or 24.9%) real estate business (391 or 12.3%), processing industry (270 or 8.5%), education (217 or 6.8%), other services (213 or 6.7%), and hotelier business and catering (212 or 6.6%), which represents 65.8% of the total number of the work permits issued.
URGENCY INSTALEMENT SERVICING OF EBRD LOAN FOR BHANSA
The Council of Ministers of BIH adopted the Ministry of Communications and Transport piece of information concerning a request of the Agency for Air Transport Service of Bosnia and Herzegovina for ensuring funds for payment of an instalment of EBRD loan (35288).
It was pointed out that the declaration of state of natural or other disaster in BIH on March 17, 2020 and outbreak of Covid-19 pandemics caused a decrease of air traffic over BIH for more than 90% and a complete cessation of funds inflow from the regular sources of income to the Agency, which consequently made it impossible to repay the EBRD loan instalment.
The Ministry of Finance and Treasury was assigned to secure, from the urgency debt servicing account, needed funds and service the EBRD loan, which is due in September 2020, in the total amount of EUR 764.509,84 or KM 1,495,251.28, including principal and interest plus bank fees to be accounted subsequently.
The Ministry of Finance and Treasury and the Agency for Air Traffic Services would have previously concluded an agreement to regulate the terms and manner of the EBRD loan funds repayment.
RESOURCES SPENDING FOR FINANCING OF PUBLIC INVESTMENT PROGRAMME
The Council of Ministers of BIH adopted a piece of information by the Ministry of Finance and Treasury of BIH on funds expenditure in 2019, for financing projects included into 2019-2021 Public Investment Programme/Development-Investment Programme of BIH Institutions (PJI/RIP BIH).
All BIH Institutions are obliged to act pursuant to a decision on ways and criteria for preparation, development and monitoring of the Public Investment Programme/Development-Investment Programme of BIH Institutions and to Instructions for proposing new projects and data up-dating on the existing projects within the Ministry of Finance and Treasury Public Investment Management System.
The Programme included 249 projects worth total KM 1.947.680.000, out of which sum KM 1.261.070.000 referred to 157 projects in implementation, KM 12.8 million to 10 approved projects, and KM 573.74 million to 102 proposed projects.
Out of total 147 Programme projects in implementation, 44 were finalised by the end of 2018, and two shifted their status from “in implementation” to the “approved”. So, the final breakdown of realisation of finances in 2019 was made for 101 public investment projects of KM 1.076.160.000 total value. The funds expenditure plan for 2019 was KM 264.31 million and it was realised at 36% rate. According to the plan, total 29 projects valued at KM 97.57 million were finalised. The realisation thereof in 2019 was KM 17.71 million. The plan realisation level in 2019 was 107%, as the total value was changed for several projects, mainly financed from foreign sources. The implementation of the remaining 72 projects of total value of KM 978.58 million was continued. Total KM 247.72 million was planned for their realisation in 2019, and the amount already spent was KM 76.65 million, thus making the realisation rate of 31%.
DECISION ON CESSATION OF OPERATION OF BIH WRESTLING ASSOCIATION
The Council of Ministers of BIH took a Decision on Work Cessation of the Wrestling Federation of Bosnia and Herzegovina for the purpose of solving the inter-Entity Associations dispute.
The Ministry of Civil Affairs of BIH is responsible to present the Decision on cessation of work of the Wrestling Federation of Bosnia and Herzegovina, in accordance with the Law on Administrative Procedure.
Earlier, the Council of Ministers adopted a piece of information of the Ministry of Civil Affairs of BIH concerning a dispute between the Entity Wrestling Associations. The report listed dispute solving activities the Ministry of Civil Affairs of BIH took to solve the dispute undermining the wrestling sport in Bosnia and Herzegovina, and identified that even a minimum cooperativity and good will lacks with the Wrestling Federation of BIH management to admit the Wrestling Association of Republika Srpska into a full membership, and eventually organise the wrestling sport in Bosnia and Herzegovina in accordance with the Law on Sports in BIH.
REPORT ON SPORTS FINANCES ANAYLISIS
The Council of Ministers of BIH adopted a piece of information of the Ministry of Civil Affairs of BIH analysing sports funding in Bosnia and Herzegovina at of all levels of authority.
The total amount of realised funds in 2018 for the needs of sport was KM 8,266,289.18, while the planned budget for 2019 amounted to KM 16,385,600.
ADOPTED ROAD MAP FOR LISBON CONVENTION IMPLEMENTATION
The Council of Ministers of BIH took a decision to adopt, with certain corrections, a Road Map for systematic implementation of Lisbon Convention on recognition of high education qualifications. The Road Map was proposed by the Centre for Information and Recognition of High Education Documents.
The aim of the Road Map is a maximum alignment in procedures of recognition of foreign high education qualifications for the purpose of access to the labour market, with consideration of Bosnia and Herzegovina-specific education competences. The Road Map contains proposals concrete steps in realising a common aim of a full harmonisation of relative legislation in Bosnia and Herzegovina with the Lisbon Convention.
WORK GROUP FOR DEVELOPMENT OF PUBLIC FINANCES MANAGEMENT STRATEGY
The Council of Ministers of BIH took the Ministry of Finance and Treasury-proposed decision to set-up a work group for development of a Strategy for Public Finance Management Improvement in the Institutions of Bosnia and Herzegovina and its implementation monitoring.
The work group will be comprised of representatives of the Ministry of Finance and Treasury of BIH, Directorate for Economic Planning of BIH, BIH Indirect Taxation Administration, and Public Procurement Agency of BIH.
APPROVED ENTRY AND STAY FOR TWO CITIZENS OF NORTH MACEDONIA
The Council of Ministers of BIH took a decision, upon a proposal of the Ministry of Security, to grand a special permission of citizens of the Republic of North Macedonia for entry and stay in Bosnia and Herzegovina.
The special permission for entry and stay in BIH was granted to Sonja Velkoski and her son Mario for the purpose of family reunion. The permission is granted under condition of possessing a negative SARS-Cov-2 test not older than 48 hours as at the moment of entry to BIH.
Persons being granted special permission are obliged to report to the Foreigners’ Affairs Service of BIH for the sake of regulation of status thereof. Also, on entry and stay in BIH such persons are obliged to adhere to all instructions and orders by competent authorities (health and epidemiologic services).