Sjednice
Council of Ministers of BIH Holds Its 6th Session
05/28/2020
The Council of Ministers of BIH took the Ministry of Security-proposed decision on Amendments and Supplements to a Decision on prescribing additional measures for entry of foreigner citizens to Bosnia and Herzegovina, namely of Montenegro, the Republic of Croatia and Republic of Serbia.
Also, for the sake of easier implementation of earlier adopted decision, it is now precisely regulated that foreigners, due to business obligations may enter BIH under condition of possessing an invitation by legal person from BIH, instead of earlier obliged precisely defined invitation letter from BIH, and of holding a certificate on negative SARS-COV-2 virus test not older than 48 from the moment of entry to BIH.
Also, the Council of Ministers was informed that on June 1 this year, a Decision on temporary closing of air traffic border-crossings cease to be valid for passengers traffic in BIH, which had banned landing and taking off from airports in BIH for the reason of protection from bringing in and spreading contagious diseases.
Practically, from June1 on, border-crossings at airports in BIH are to be open and provisions of earlier taken decisions on additional conditions of foreigners’ entry to Bosnia and Herzegovina will be applicable, along with compliance to epidemiological measures set by responsible bodies in BIH.
SUPPORT TO DOMESTIC ECONOMY: TO TAKE DECISION ON PREFERENTIAL TREATEMENT OF DOMESTIC GOODS
The Council of Ministers tasked the Public Procurement Agency to draft a proposal decision on mandatory application of preferential treatment of domestic products for a year time-span, staring from this June 1 this, in 30 percentage.
Despite certain limitations stemming from the Stabilisation and Accession Agreement, the measure is taken in order to assist domestic economy and curb-up the aftermath of corona virus pandemics to BIH economy.
Preceding was the endorsement of an Initiative of Republika Srpska and the Federation of Bosnia and Herzegovina for adoption of a resolution on mandatory application of preferential treatment of domestic products. The measure was agreed by the Chairman of the Council of Ministers of BIH, President of the Government of Republika Srpska and Federal Prime Minister.
MORE EFFECTIVE COURT FEES COLELCTION
The Council of Ministers of BIH defined a Proposal Law on Amendments and Supplements to the Law on Court Fees in Proceeding before the Court of Bosnia and Herzegovina, which creates conditions for setting-up a more effective court fees collection.
The Amendments and Supplements to the Law regulate, i.e. change the time of maturity, and remove shortfalls in collection procedure and decision-taking on forcible collection of non-paid court fee.
Simultaneously, provisions were specified so as to make the forcible court fee collection more effective concerning physical persons not being BIH residents of domiciles, but are owners of property in Bosnia and Herzegovina.
The Ministry of Justice will send the Proposal Law on Amendments and Supplements to the Law on Court Fees in Procedures before the Court of BIH to the Parliamentarian Assembly of BIH for further procedure.
MORE THAN EUR 11.7 MIL. WBIF GRANT FOR FASTER ROAD COMMUNIATION BETWEEN SARAJEVO AND MOSTAR
The Council of Ministers defined a proposal Agreement in Grant between Bosnia and Herzegovina and the European Investment Bank, Joint European Fund for Western Balkans/VB-IG02-BiH-TRA-05 “Mediterranean Corridor CVC: Bosnia and Herzegovina – road communication with Croatia, subsection 1 Tarčin - Ivan”. The amount of WBIF grant us EUR 11,780,000.00, and funds will be implemented via the European Investment Bank.
The total expenses were estimated at EUR 58,700,00.00, of which the EIB loan amounts EUR 40.42 million, EBRD loan is EUR 26.0 million, WBIF grant – the European Union contribution is EUR 11.78 million, and domestic contribution accounts for EUR 6.5 million. The Project will be implemented by the Public Enterprise Autoceste Federacije BiH.
The Project consists of construction of a new 4.9 km motorway section, including two bridges and rest lane, and is defined as Part 1: Tarčin – entrance to tunnel Ivan, which would considerably cut the time of travel between Sarajevo and Mostar. The benefits expected are notable in terms of decreasing car accidents rate, savings on vehicles operation and decrease of local pollution. Also it will increase accessibility and will promote both local and regional development by way of increasing annual traffic on daily basis, and will link the existing state road M17 with the corridor V c.
The Ministry of Finance and Treasury will provide the Proposal Agreement and Platform for its conclusion to the BIH Presidency for further procedure, with a proposal for the Minister of Finance and Treasury as the BIH signatory thereof.
INTERANTIONAL ASSISTANCE IN EQUIPMENT AND OTHER MEANS ALLOCATED
The Council of Ministers of BIH took the Ministry of Security-proposed Decision on allocation of international assistance for protection and rescue in terms of equipment and other means.
It is about an international assistance received from the Governments of the Republic of Croatia, Republic of Poland, State of Qatar, and NGOs and individuals from the People’s Republic of China.
The assistance is to be allocated in accordance with allocation principles, namely, 61.5% to the Federation of BIH, 37.5 % to Republika Srpska, and 1% to the Brčko District of Bosnia and Herzegovina. The Federation of BIH will share the assistance received with 10 cantons in equal share, 50% each level.
The assistance consists of protective face masks, gloves, tents, sleeping bags, blankets, sponge pads, alcohol, protective eye glasses, viziers, protective suits and infrared thermometers.
BIH AND UK STRENGTHEN COOEPRATION IN ROAD TRANSPORT
The session defined a proposal Agreement between the Council of Ministers of Bosnia and Herzegovina and Government of the United Kingdom of Great Britain and Norther Ireland on International Road Transport.
The Agreement will create legal preconditions for regulation of the international transport of passengers and goods, taking regard of the relevant international standards.
The Agreement treats international transport of passengers and goods between territories of the contacting sides or in transit over the territories thereof, as well as the transport of goods between one concreting party and the third country by transport means registered in the territory of the other contracting side.
The Ministry of Communications and transport will provide the Proposal Agreement with accompanying Negotiations Report to the BIH Presidency for further procedure, with a proposal for the BIH Minister of Communications and transport as the BIH signatory thereof.
TURKEY ASSISTS BIH ARMED FORCES
The Council of Ministers of BIH defined a Proposal Platform for negotiation on both an Agreement on Military-Financial Cooperation and Implementation Protocol on Financial Assistance between the Council of Ministers of Bosnia and Herzegovina and Government of the Republic of Turkey.
The value of resources planned under the Project is nearly KM 60 million, according to the current foreign exchange list.
In accordance with the Agreement and Implementation Protocol provisions, the Republic fo Turkey will receive up-dated proposals project, covering the kind, amount and technical specifications of material, and the implementation thereof would considerably contribute to solving the issue of equipment, modernisation and ability up-grading of the BIH defence system.
Also planned were funds for education of members of the BIH Armed Forces in the Republic of Turkey.
The Ministry of Defence will provide the Proposal platform to the BIH Presidency for further procedure with a proposal for the Minister of Defence of BIH as the BIH signatory of the Agreement and Implementation Protocol.
BIH AND JORDAN BOOST COOPERATION IN AGRICULTURE
The Council of Ministers defined a Proposal for conclusion of a Memorandum of Understanding between the Ministry of Foreign Trade and Economic Relations of Bosnia and Herzegovina and Ministry of Agriculture of the Hashemite Kingdom of Jordan on Cooperation in the Area do Agriculture.
The Memorandum will incite activities on development and strengthening of mutual beneficial cooperation in terms of exchange of information, facilitation and support to businessmen interconnection, in addition to support to scientific contacts in the area of agriculture. The Ministry of Foreign Trade and Economic Relations will provide the proposal to the BIH Presidency for further procedure, and the Minister of Foreign Trade and economic relations of BIH was proposed for the BIH signatory thereof.
BIH PART OF FAO-FINANCED PHITOSANITARY CERTIFICATION PROJECT
The Council of Ministers defined a proposal for signing of a project document on regional technical cooperation programme titled “Support to Improvement of National System of Herbal Pests Monitoring and Phytosanitary Certification System”.
The Programme was initialled by Armenia; Bosnia and Herzegovina; Georgia; Republic of Belarus; Republic of Moldova; North Macedonia, and Ukraine, and technical support for its realisation will be provided by UN Organisation for Food and Agriculture (FAO).
The Project value is USD 388,000 for seven countries, and the implementation funds were secures per project with no contribution obligations by counties individually.
The proposal for signing of the project document will be provided to the BIH Presidency for further procedure, and the Minister of Foreign Trade and Economic Relations of BIH is proposed for the BIH signatory thereof.
RATIFICATION
The Council of Ministers defined several proposal decisions on ratification, namely for: Additional Protocol 6 on Service Trade to the Agreement on Amendments and Accession to the Central European Agreement on Free Trade (CEFTA 2006); and Agreement between the Council of Ministers of Bosnia and Herzegovina and Government of Romania on Classified Data Mutual Protection.
The Ministry of Foreign Affairs will provide the proposal decisions on ratification to the BIH Presidency for further ratification procedure.
BIH PARTICIPATES IN 11TH REPLENISHMENT OF IFAD FUNDS WITH EUR 50k
The Council of Ministers took the Ministry of Finance and Treasury-proposed decision to approve funds for payment of contribution into the 11th replenishment of International Fund for Agricultural Development 2019-2021 funds in amount of EUR 50, 000, in line with BIH membership-related obligations.
The Fund was established with a task to finance food production and improve gein general terms the life of inhabitants of developing counties rural areas (it finances all forms of agricultural and related activities under relatively concessive terms).
The membership in IFAD is open to any UN member, and Bosnia and Herzegovina is tre Organisation member as at March 19, 1994.
FOREIGN DEBT DECREASED LAST YEAR
The Council of Ministers adopted a piece of information of the Ministry of Finance and Treasury on public debt of Bosnia and Herzegovina as at December 31, 2019, and will provide it to the BIH Parliamentarian Assembly for information.
The public debt of Bosnia and Herzegovina as at December 31, 2019 was KM 11 billion and 200.33 million, of which the foreign debt was KM 8 billion and 38.87 million or 72.67%, while internal debt was Km 3 billion and 61.46 million or 27.33%. In relation to the end 2018, the public debt increased for Km 93.69 million or 0.84%, and foreign debt decreased for KM 66.04 million or 0.88%, with internal debt increased for KM 159.73 or 5.50%.
In total, public indebtedness, the federation of BIH participates with 50.8%, Republika Srpska with 48.08% and the Brčko District with 0.5%.
The participation of the public debt of Bosnia and Herzegovina in GDP 2019 was 31.69%.
Viewed by the foreign debt structure by creditors, the major participation is of the World Bank – IDA and IBRD with 34%, European Investment Bank with 24%, Paris Club of creditors with 7.39%, European Bank for Reconstruction and Development with 6.59%, International Monetary Fund with 3.77%, which represents the total 76.23% of foreign debt.
TO LAUNCH ACTOVOTIES WITH CROATIA FOR NEW BORDER-CROSSINGS CONTRACT
THE Ministry of Security will launch activities on drafting a new contract between Bosnia and Herzegovina and the Republic of Croatia on border-crossings, and it should set-up a related work group.
Previously, the Council of Ministers adopted a report from the Ministry of Security on activities on drafting a draft contract on amendments and supplements to the Contract between Bosnia and Herzegovina and the Republic of Croatia on Broder-Crossings.
CoM BIH ON DECISIONS FROM MONEYVAL COMMITTEE 59TH MEETING
The Council of Ministers adopted a piece of information on decisions taken at the 59th plenary meeting of the Council of Europe Expert Committee for Evaluation of Fight against Money Laundering and Financing of Terrorist Activities (Moneyval Committee) concerning Bosnia and Herzegovina.
The Ministry of Security of BIH will, in accordance with the legal framework of Bosnia and Herzegovina concerning the implementation of international restrictive measures, provide to the Council of Ministers a proposal solution aimed at adequate implementation of FATF special recommendation referring to the application of international and domestic terrorism-related restrictive measures.
The Moneyval Committee assessed at tis 59th session as positive the progress of BIH made in implementation of several recommendations concerning prevention of suspicious transactions in financing terrorism and money launder, as well as implementation of relevant international conventions.
TO PREPARE DRAFT LAN ON PREVENTION OF MONEY LAUNDERING AND FINANCING TERRORISM
The Council of Ministers of BIH adopted a piece of information by the Ministry of Security on activities of a Work Group for preparation of a Draft Law on Prevention of Money Laundering and Financing Terroristic Activities.
The Ministry of Security will task the Work Group for preparation of the Draft Law to make a full harmonisation of the Draft Law in the manner it was provided under ta decision setting-up the Work Group.
BIH PUBLIC DEBT SUSTAINABILITY TIL 2023 ANALYSIS
THE Council of Ministers of BIH took note of an Analysis on Bosnia and Herzegovina Public Debt Sustainability f2019-2023,, prepared by the Ministry of Finance and Treasury, with an aim to assess the current state of affairs with the BIH public indebtedness and estimate its mid-term trends, as well as aiming to define basic risks to affect the public debt sustainability.
It is possible to assess at present that BIH is a country with sustainable debt in mid-terms, based on the basic outlooks for 2023, with real growth of 3.8%, inflation rate of 1.3%, primary balance of 2.4% GDP, and effective interest rate of 2.4%, indicates the analysis, and ads that the basic risks are, primarily, in the public debt held by non-residents, followed by debt in foreign currencies and needs for foreign financing.
DECREASED PUBLIC SPENDING IN BIH INSTITUTIONS FOR ABOUT KM 76.2 MILLION
The Council of Ministers adopted a Report on Budget Execution of Institutions of Bosnia and Herzegovina and International Obligations of BIH for 2019, to be provided by the Ministry of Finance and Treasury to the BIH Presidency and Parliamentarian Assembly of BIH. The Report will be published at the web sites of the Ministry of Finance and Treasury and Council of Ministers of BIH.
The total realised revenues, receivables and finances available to Bosnia and Herzegovina Institutions last year were KM 1,013,042.815 or 5% higher than planned. Simultaneously, the total made expenditures were KM 884,965,637 and were less for about KM 76.2 million or 8% relative to the year before.
A drop relates primarily to capital expenditures and current grants, as well as transfers due to temporary financing of the BIH Institutions last year.
Also, gross salaries and benefits of employees remained at the same level as in 2012, meaning that the Council of Ministers of BIH continued to apply a decision on the salaries’ cuts.
All obligations due based on foreign debt in 2019 were timely serviced in amount of KM 793.69 million. The principal repayment accounted for KM 663.68 million, and interest, service and other costs were KM 130.01 million.
CoM ON CONSTRUCTION OF INTER-STATE BRIDGE NEAR SVILAJ
The session adopted an Activities Report on realisation of an Agreement between the Council of Ministers of Bosnia and Herzegovina and Government of the Republic of Croatia on construction of an inter-state bridge across the River Sava near Svilaj and connecting border sections of on the corridor V c motorway for year 2019.
The Ministry of Communications and Transport was charged to continue its activities on technical preparation of the construction process, and following the finalisation of the required activities to report to the Council of Ministers on realisation of the River Sava bridge construction project near Svilaj.
NEUM IN COASTAL AREA MANAGEMENT PROGRAMME
The Council of Ministers adopted a Feasibility Study for carrying out the Bosnia and Herzegovina Project under the Coastal Area Management Programme (CAMP), proposed by the Ministry of Foreign Trade and Economic Relations.
A proposal for the CAMP area is the territory of the Municipality of Neum, which has a direct access to the Adriatic Sea, and as such it represents one of the most important touristic destinations in BIH, and with accompanying natural wealth it enables diversified use of the whole Municipal area in economic and especially touristic purposes.
The Feasibility Study for implementation of the CAMP Project in BIH breaks dawn the existing laws, policies, plans and strategies; it analyses institutional arrangements for managing the coastal area, lists the on-going initiatives and projects aiming sustainable development of BIH coast. Also, it identifies needs and requirements for an integrated management of coastal area of Bosnia and Herzegovina and gives a proposal of a CAMP area and connected activities, for the aim of long-term project sustainability.
The feasibility study drafting for implementation of the CAMP project in Bosnia and Herzegovina was helped by PAP/RAC from Spit, the Republic of Croatia, and is has been completed in cooperation with the Ministry of Foreign Trade and Economic Relations of BIH.
NOTE ON ECOOMIC REFORM PROGRAMME ADOPTED
The Council of Ministers of BIH adopted the Directorate for Economic Planning piece of information on documents and process of the 2020-2022 Economic Reforms Programme of Bosnia and Herzegovina (PER 2020.2022).
This information relates to joint conclusions of the economic-fiscal dialogue between the EU and Western Balkans counties and Turkey and European Commission Evaluation for the 2020-2022 Economic Reforms Programme of Bosnia and Herzegovina (PER).
Practically, the Council of Ministers was informed of the process of economic dialogue of the Western Balkans unfolding with the European Union committees, and which discusses joint conclusions and economic reforms programme filled by candidate countries and potential candidate counties for accession to the EU.
The Directorate for Economic Planning with Entity coordinators for the Economic Reforms Programme coordinated the whole process through, although in writing due to corona virus pandemics.
The Directorate for Economic Planning of BIH will distribute the documents to all institutions and bodies taking part in drafting the economic reforms programme so that they may use findings and suggestions therein in drafting a new 2021-2023 Economic Reforms Programme.
ACTIVITY REPORTS FOR LAST YEAR
The Council of Ministers of BIH adopted in the second round of voting work individual reports for year 2019, namely of: the Council of Ministers of Bosnia and Herzegovina Secretariat-General; Independent System Operator in Bosnia and Herzegovina; Ministry of Finance and treasury of Bosnia and Herzegovina; Ministry of Finance and Treasury Central Harmonisation Unit; Directorate for European Integrations; Council of Ministers of Bosnia and Herzegovina Legislative Office; Competition Council of Bosnia and Herzegovina, as well as a Work Report of the Accounting and Audit Committee of Bosnia and Herzegovina for march 1, 2019 – February 29, 2020.
Upon a proposal by the Ministry of Finance and Treasury, a Work Report of the Committee for Salaries and Reimbursements in the Institutions of Bosnia and Herzegovina for 2019 was adopted.
WORK PROGRAMMES
The Council of Ministers adopted, in the second round of voting, individual work programmes for year 2020, namely of: the Agency for Staff Education and Professional Up-Grading – AEPTM; Agency for Pharmaceuticals and Medical Means; State regulatory Agency for Radiation and Nuclear Safety; Office for Harmonisation and Coordination of Payment System in Agriculture, Food and Rural Development of Bosnia and Herzegovina; Insurance Agency of Bosnia and Herzegovina; Centre for Information and Recognition of High Education Documents; Council of Ministers of Bosnia and Herzegovina Civil Service Appellation Committee; Archives of Bosnia and Herzegovina; Foreigners’ Affairs Service; Police Support Agency; State Investigations and Protection Agency; Border Police of Bosnia and Herzegovina; Public Procurement Agency of Bosnia and Herzegovina; General Affairs Service of Bosnia and Herzegovina institutions; Fund for Return of Bosnia and Herzegovina; Agency for Pre-School, Primary and Secondary Education; Ministry of Finance and Treasury Central Harmonisation Unit; Consumer Protection Ombudsman Institution of Bosnia and Herzegovina; Council of Ministers of Bosnia and Herzegovina Directorate for Economic Planning; Postal Traffic Agency of Bosnia and Herzegovina; Directorate for European Integrations; Agency for Forensic Research and Expert Testimony; Institute for Intellectual Property of Bosnia and Herzegovina; Directorate for Coordination of Police Bodies of Bosnia and Herzegovina; Competition Council of Bosnia and Herzegovina; Agency for Labour and Employment of Bosnia and Herzegovina; Accrediting Institute of Bosnia and Herzegovina; and Institute for Standardisation of Bosnia and Herzegovina.
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