FBIH TO RELEASE OIL AND FOOD RESERVES

SARAJEVO, Bosnia (November 19,2007) – Following the increase of prices of basic food products in Bosnia – oil, sugar, flour and milk, the FBiH Entity Government will activate for retail certain amounts from its product reserves.

Oil reserves will be released this week, FBiH Entity Minister of Finance Vjekoslav Bevanda told a press conference after the session of the FBiH Entity Government in Sarajevo.

The FBiH Entity Minister of Labour and Social Policy Perica Jelecevic said that the prices of that oil will be lower than the current ones. However, no one from the FBiH Entity Government was able to give their exact price.

More on this will be know following consultation with the Product Reserves Directorate, which is expected to provide this information today.

Head of the Inspection Administration Ibrahim Tarik said that controls conducted in Sarajevo, Tuzla, Bihac and Zenica have shown a clear increase in prices.

This hike in prices has been caused by higher cost of fuel, shortages at the market causes by poor yields, and there are also some manipulative moves by oil producers.

“There has been an evident increase in prices, I don’t know why this happened, an artificial panic has been created that the price of oil could reach 8 Bosnian Marks per liter. I think that this will never happen and we shall not allow it to happen.

There is no need for citizens to buy large amounts of products because there will be no shortages. There will always be oil, flour, sugar and milk. The only question is what will be happening at the market.

Statements in the Bosnian media by people who have no knowledge about the market, create panic and a negative atmosphere”, Tirak said.

Minister Perica Jelecevic informed journalists about conclusions and proposed measures from the today’s session of the FBiH Entity Government following the increase in prices of basic living products and the disturbance this has caused among the citizens.

“I think that the present tension resulting from the increase in the prices of living products will somewhat lessen”, Jelecevic said.

The FBiH Entity Government will also consider the application of the FBiH Entity Law on controlling prices in order to curb possible manipulations and the creation of artificial shortages.

Jelecevic links the present situation with the current political climate in Bosnia, which creates tension among citizens and at the market in general.

The FBiH Entity Government has concluded that relevant ministries, together with relevant cantonal ministers, will analyse the situation, because social policy in FBiH largely falls under the authority of cantons.The FBiH and cantonal governments will then put together a proposal for reacting to this price increase,the FBiH Entity Prime Minister Nedzad Brankovic said.