Debt 2 Restructuring Arrangement between BiH and KfW Bank Signed

 

A separate arrangement between Bosnia and Herzegovina and KfW Entwicklungsbank (KfW Development Bank of the Federal Republic of Germany) for restructuring the Debt 2 in the amount of 20 million Euros, was signed today in Sarajevo by a vice chairman of the BiH Council of Ministers, minister of the Ministry of Finance and Treasury, Mr. Dragan Vrankić, KfW director for the region of Balkans and Ukraine Mr. Kirk Mildner and of the BiH KfW Office Mr. Gerald Kühnemund.

This arrangement results from the Debt Consolidation and Reprogramming Agreement between the BiH Government and the Government of the Federal Republic of Germany signed in 1999, whose certain conditions provided a possibility of writing off our country`s debt totally amounting to 49,643,218.19 Eur.

With regard to energy related projects, namely environment preservation and protection in the area of hydro-electric power plants Trebinje and Rama, the BiH Council of Ministers in cooperation with the Government of the BiH Federation and the Government of Republika Srpska need to invest 20% of the given amount. For the purpose of entire financing of both projects, the RS Government will allocate the amount of 1,145,120.00 Euros (28.628%) from its budget and the BiH Federation Government 2,854,880.00 Euros (71.372%).

-This represents a continuity of works we perform that are of interest to Bosnia and Herzegovina, and not only with the Government of the Federal Republic of Germany but also   KfW bank, said minister Vrankić, expressing gratitude for the received support.

A head of the German delegation, a representative of the Federal Ministry for Economic Cooperation and Development, Mr. Rolf Lerch marked the implementation of the first tranche as successful, stating that the second tranche is of an equal amount, whereas negotiations about technical cooperation and application of the third tranche are in progress. /end