FOREIGN INVESTMENTS IN BOSNIA AMOUNTED TO 1, 1 BILLION BOSNIAN MARKS IN 2006

SARAJEVO, Bosnia (October 12, 2007) - Foreign Direct Investments (FDI) in Bosnia during 2006 amounted to 1, 1 billion Bosnian Marks (798 million US Dollars), which is by 18% higher compared to 2005, that is, at the same level like they were in record 2004.

This data do not include large privatization contracts which were made in 2006, but only completed transactions, which means that the volume of FDI in 2007 will be even higher.

Like in the previous years, the largest share of investments in 2006 came from Austria (45%), followed by Croatia (15%) and Slovenia (14%).

The largest inflow of FDI was recorded in the financial mediation sector, followed by the companies in the domain of processing industry and trade. Significant part of investments (17, 7%) is related to reinvested profit, since investments from the previous years are becoming profitable and owners decide to keep the part of that profit and strengthen with capital local banks and companies. Total stock of FDI at the end of 2006 was 5, 89 billion Bosnian Marks (4,3 billion US Dollars), which means that the level of the foreign investments has more than doubled compared to three years ago.

Governor of the Bosnian Central Bank Kemal Kozarić stressed that foreign investments are very important for the Bosnian economy from the standpoint of opening of new jobs, as well as from the standpoint of increasing of the technological level in companies, as well as for the sustainable financing of the Balance of Payments deficit.

Data on inflow of foreign investments are showing that during recent years the Bosnian economy is constantly attracting significant foreign investments and that this trend will speed up as we approach closer to the EU and with the accelerated transition process, the Bosnian Central Bank said.

Data which was published by the Bosnian Central Bank was compiled and processed in accordance with the international statistics standards and represent internationally comparable and reliable statistical data on foreign investments in Bosnia.

Revised statistical data for the previous two years were also published as a part of the new data. Sector classification was also introduced, which is in accordance with the statistical classification of the economic activities in the EU (NACE).