BOSNIAN CENTRAL BANK GOVERNOR WARNS ABOUT TRADE DEFICIT IMPACT

SARAJEVO, Bosnia (November 3,2008) - Speaking at a forum organized by the Krug 99 intellectual association yesterday, the Governor of the Bosnian Central Bank Kemal Kozaric asserted once again that Bosnia would be affected indirectly by the global financial crisis, but the national financial system would not be threatened, because it is based on traditional banking services of taking deposits and giving loans.

Governor Kozaric urges bankers to refrain from raising interest rates, although he cannot prevent them from doing that.He expects the inflation rate to remain around 7.5 per cent by the end of 2008, but what worries him is the lack of interest among government members to tackle the economy’s key burning issue – the trade deficit.

The measures he recommended include subsidies to food producers; continuing with privatization and cutting public spending.
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