SARAJEVO, Bosnia (October 7,2008) - According to the Director of the World Bank’s Office in Bosnia Marco Mantovanelli, the Bosnian economy is in quite a good shape. The inflation rate is around eight percent, and it is not expected to go over ten percent by the end of 2008, and GDP growth rate is at a stable six per cent, so there is no reason for major concerns,he said.
However, the financial crisis that first hit the United States and than started pouring over to Europe will certainly be felt in Bosnia, as well,he said.
Mantovanelli is uncertain about the extent of its impact, but says that banks in Bosnia are already more restrictive in lending, interest rates are slightly up, while remittances are stagnant (last year the expatriates sent around 4 billion Bosnian Marks to their relatives in Bosnia).
As a result, Mantovanelli expects the real estate prices to go down. He hopes the state would find ways to help the business sector.
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Showing posts with label World Bank Office in Bosnia. Show all posts
Showing posts with label World Bank Office in Bosnia. Show all posts
Tuesday, October 7, 2008
Friday, February 29, 2008
TWO DAY REGIONAL CONFERENCE ON SOCIAL SECURITY OPENED IN SARAJEVO
SARAJEVO, Bosnia (February 29,2008) – The Bosnian capital Sarajevo is hosting a two day conference on healthcare financing, pensions and unemployment benefits in the southeastern Europe.
At the conference organized by the World Bank in cooperation with the Direction for Economic Planning in Bosnia,the high government officials from Bosnia, Montenegro, Serbia, Albania and Macedonia gathered in Sarajevo along with experts from the World Bank and other international organizations.
The goal of the conference is to reach consensus on necessary reforms of health financing, pensions and unemployment benefits, especially in the context of citizen’s aging. Participants shall exchange experience from their own countries on social security and financing in this area.
Head of the World Bank office in Bosnia Marco Mantovanelli stated that issues of financing healthcare, pensions insurance and unemployment insurance are extremely important for all countries of the southeastern Europe which are facing new challenges related to the sustainability of existing models of social security.
In these countries these rights are realized through incomes from formal employment and considering that the base of formal employment is very narrow, authorities must rely on the narrow tax base for collection of income tax. Consequence of this are high tax rates which is does not motivate employment in formal sector.
"High taxes on work power harden employment of larger number of people and on the other hand, with fewer employees there is less assets for financing all social rights”, added Mantovanelli.
Population in these countries is getting older and the only exception is Albania, so there is fewer work competent people who could pay income tax which leads to situation in which these countries would have to decrease rights and find new ways for their financing.
"I hope we will exchange information during this conference on how individual countries think about solving these problems and that we will reach a consensus on how to move on”, added Mantovanelli.
Bosnia is currently developing a new strategy for mid-term development. Head of Direction for Economic Planning Ljerka Maric stated that this conference is a chance to reconsider situation in the social sector from 2004 to 2007.
"Economically we are progressing but social expenditure is highly endangered”, stated Maric and underlined the priority of implementation of structural reforms in these three sectors.
.
At the conference organized by the World Bank in cooperation with the Direction for Economic Planning in Bosnia,the high government officials from Bosnia, Montenegro, Serbia, Albania and Macedonia gathered in Sarajevo along with experts from the World Bank and other international organizations.
The goal of the conference is to reach consensus on necessary reforms of health financing, pensions and unemployment benefits, especially in the context of citizen’s aging. Participants shall exchange experience from their own countries on social security and financing in this area.
Head of the World Bank office in Bosnia Marco Mantovanelli stated that issues of financing healthcare, pensions insurance and unemployment insurance are extremely important for all countries of the southeastern Europe which are facing new challenges related to the sustainability of existing models of social security.
In these countries these rights are realized through incomes from formal employment and considering that the base of formal employment is very narrow, authorities must rely on the narrow tax base for collection of income tax. Consequence of this are high tax rates which is does not motivate employment in formal sector.
"High taxes on work power harden employment of larger number of people and on the other hand, with fewer employees there is less assets for financing all social rights”, added Mantovanelli.
Population in these countries is getting older and the only exception is Albania, so there is fewer work competent people who could pay income tax which leads to situation in which these countries would have to decrease rights and find new ways for their financing.
"I hope we will exchange information during this conference on how individual countries think about solving these problems and that we will reach a consensus on how to move on”, added Mantovanelli.
Bosnia is currently developing a new strategy for mid-term development. Head of Direction for Economic Planning Ljerka Maric stated that this conference is a chance to reconsider situation in the social sector from 2004 to 2007.
"Economically we are progressing but social expenditure is highly endangered”, stated Maric and underlined the priority of implementation of structural reforms in these three sectors.
.
Wednesday, February 20, 2008
BUSINESS REGISTRATION TIME IN BOSNIA REDUCED TO AVERAGE 8,5 DAYS
SARAJEVO, Bosnia (February 20,2008) - The World Bank’s office in Bosnia has reported that it considers the implementation of a business reform programme through its credit line a success.
Its second tranche, worth USD 32 million, has been paid to the country’s implementation offices.The World Bank is especially happy with the e-business registration progress.
Head of the World Bank Office in Bosnia Marco Mantovanelli said that Bosnia is making progress towards a new strategy of the partnership. The business registration time at the country’s five busiest courts has been reduced to average 8,5 days. It now takes average 29 days to start a business in Bosnia, whereas in 2002 it took 80 days.
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Its second tranche, worth USD 32 million, has been paid to the country’s implementation offices.The World Bank is especially happy with the e-business registration progress.
Head of the World Bank Office in Bosnia Marco Mantovanelli said that Bosnia is making progress towards a new strategy of the partnership. The business registration time at the country’s five busiest courts has been reduced to average 8,5 days. It now takes average 29 days to start a business in Bosnia, whereas in 2002 it took 80 days.
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