prijava
SARAJEVO, June 18 (FENA) - The Prime Minister of FBiH Fadil Novalić stated today in Sarajevo that the Government of FBiH at today's session adopted the Program of Economic Stabilization and Recovery of the Federation for 2020-2021.
“The program is composed of a combination of different measures that need to be implemented in order to achieve the desired economic recovery, i.e. to return to the level of economic growth from before the pandemic, and to create the necessary preconditions for sustainable and accelerated economic growth. This document, among other things, envisages further strengthening of the Guarantee Fund established today,” Novalić pointed out.
He specified that according to the estimates of foreign and domestic institutions, the fall in GDP in the Federation, and even in BiH, will amount to between 3.2 and five percent.
“When we take into consideration the projected growth of real GDP for this year, from before these events, which should have been around 2.8 percent, then we are talking about a decline in economic activity from six to around 7.8 percent,” he added is Novalić.
He stated that many simulations were made for that document, and the simulation of GDP according to the expenditure principle was used as a basis, which they consider to be optimal in the given case.
“We have set key goals that we want to achieve through a series of measures: to preserve jobs by stabilizing and stimulating economic recovery, maintain fiscal stability, which includes pensions, disability benefits, and other budget transfers, support exports, reform public enterprises, maintain macroeconomic stability, strengthen the health sector, the social security system and protection against job loss, and to accelerate the implementation of public investments,” Novalić emphasized.
He said that the Program defines measures in the field of fiscal policy, active employment measures, as well as measures within the financial sector, including the establishment and strengthening of the Guarantee Fund.
Novalić added that the loan funds from that fund, through appropriate programs, will enable economic entities to finance current liquidity, procure the necessary working capital, complete investments, and start smaller investments.
“The Government establishes a guarantee fund at the Development Bank, which will, on behalf of the Federation, provide guarantees to commercial banks, for all companies in the targeted sectors, especially those whose activities are characterized as strategic development sectors. For a start, we will provide 100 million KM of our funds, which will represent a guarantee potential of 500 million KM. This should encourage banks to increase lending to the economy with a credit potential of one billion KM,” said Novalić.
He also stated that the fourth set of measures aims to improve the business environment, increase the degree of competitiveness of the economy and increase the resilience of the economy, and the fifth accelerates the activation of public investment.
Novalić believes that the combination of public spending, public investment that should be accompanied by private consumption, will enable a return to the level of economic growth from before the pandemic.
“The situation is not so pessimistic because every crisis is also a chance. We can use this period to do some things that will ensure long-term stability and the desired economic growth. Global supply chains are disrupted. Many companies from developed countries will be looking for alternative supply chains, and there are great opportunities for the Western Balkans, and thus for our country as well,” Novalić said.
According to him, if everything proposed is implemented in a synchronized manner, it is expected that in 15 to 18 months we could return to the level of economic growth from before the pandemic, i.e. the level from February this year.
(FENA) L. N.
