KOZARIC: TRADE DEFICIT AND INFLATIONARY PRESSURES ARE THE BIGGEST THREAT TO THE BOSNIAN ECONOMY

SARAJEVO, Bosnia (July 8,2008) – A roundtable discussion about the implementation of a project dealing with the ranking of banks, insurance companies and microcrediting organizations started in the Bosnian capital Sarajevo today with a presentation of the current situation in the Bosnian financial market by the Bosnian Central Bank’s Governor Kemal Kozaric.

According to him, the main risks the Bosnian market is dealing with are the trade deficit and inflationary pressures. The trade deficit was 8 billion Bosnian Marks last year, and in the first four months of 2008 it grew by another 4 billion Bosnian Marks, Kozaric warned.

As far as the second threat is concerned, the inflationary pressures caused by growing prices of oil and food are not exclusive to Bosnia.

Although monetary instruments to fight these problems are limited, some countries are already looking for solutions in restructuring, subsidies to agriculture and fiscal benefits, the Bosnian Central Bank’s Governor said.
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