Dr. Lagumdzija at the EBRD Conference “Investing in the Western Balkans”: Bosnia and Herzegovina needs reforms to improve the business environment



On 24 February, 2014, Deputy Chairman of the Council of Ministers and Minister of Foreign Affairs of Bosnia and Herzegovina Dr. Zlatko Lagumdzija, who is also Governor of the European Bank for Reconstruction and Development for B&H, participated in the high-level Conference of EBRD “Investing in the Western Balkans” that took place in London.

During the Conference prime ministers, ministers and representatives of business community of the Western Balkan countries, as well as representatives of EBRD, the European Union and the World Bank presented investment and business opportunities in each country and in the entire region and promoted foreign direct investment and projects of trans-border cooperation in the region.

At the session “Investment Climate” Dr. Lagumdzija presented investment and business opportunities in Bosnia and Herzegovina. He emphasized, among other issues, that B&H currently ranks 87^th on the list of global competitiveness (Global Competitiveness Index 2013-14) in the world that presents continuous growth in the last four years. Two credit rating agencies Moody’s Investor Service and Standard and Poor’s follow sovereign credit rating of B&H which remains the same by the end of 2013 (Moody’s Investor Service – “B3 outlook positive”, Standard and Poor’s – “B outlook positive”). B&H’s external debt at the end of 2013 was 11 billion KM or 36% of GDP that is the best indicator in the region. Fiscal deficit is at minimum in the region and during the period of four years it was decreased from 5% to 2, 1% GDP.

Dr. Lagumdzija stressed that the business environment in B&H was improved last year by certain activities of entity’s governments through modernization and facilitation of the law on inspection and the law on entrepreneurs, as well as through the reform of registration of entrepreneurs. He assessed that improvement of the business environment requires specific reforms aimed at enhancing political stability, the fight against corruption, improving efficacy of the public administration and institutions in B&H at all levels in order to have more efficient and more economic organization, development of economy, sector of industry and production as a basis for opening new working places, economic activity and new foreign investment.

He also said that he is encouraged by announcements of European Commissioner for Enlargement Stefan Fule that the European Union will have a new economic approach towards the Western Balkan countries which refers to strengthening competitiveness, increasing employment and economic growth.

“The current stagnation in solving specific political issues, among which is also the implementation of ruling in the case “Sejdic-Finci”, certainly has a negative impact on the overall image of B&H, but the same should not be an obstacle for economic development of the country and obviously the EU accepted it by creating a new approach towards our country on its path to European integration which will reflect in crucial economic and social reforms and acceleration of negotiations and providing technical support in the implementation of 23 and 24 chapters in terms of the rule of law, administration of justice and the fight against corruption and organized crime”, emphasized Dr. Lagumdzija.

Dr. Lagumdzija and the delegation of B&H met with EBRD President Suma Chakrabarti, discussing new investment of the Bank in our region, particularly in the field of small and medium entrepreneurs.

On the sidelines of the Conference Dr. Lagumdzija met with the delegation of EBRD and on this occasion they spoke about organizing the presentation of business and investment opportunities of Bosnia and Herzegovina at the upcoming Annual Meeting of the EBRD Board of Governors to be held in Warsaw in May this year and B&H is the only country in the region that will have such a presentation.

During his visit, Dr. Lagumdzija met with Nigel Casey, Advisor to Prime Minister of the United Kingdom David Cameron and they discussed recent events in our country, as well as the need for a new approach of the EU towards B&H.