The signing ceremony of the tripartite protocol for the Programme of Technical Cooperation between the European Central Bank (ECB), the Delegation of EU to Bosnia and Herzegovina (EU) and the Central Bank of Bosnia and Herzegovina (CBBH) was held on 15 March in the premises of the CBBH.

In the presence of numerous journalists from entire Bosnia and Herzegovina and from the region, the protocol was signed by Gertrude Tumpel-Gugerell, the Member of the Executive Board of the ECB, Ambassador Dimitris Kourkoulas, the Head of the Delegation of the EU to BH and Kemal Kozarić, Ph.D., the Governor of the Central Bank of Bosnia and Herzegovina.

The Governor of the CBBH, in his opening speech, said: „With this signing of the protocol today, we will mark the beginning of implementation of the technical assistance, whose objective is to support the Central Bank of Bosnia and Herzegovina in its efforts to implement the European Union central banking standards, while preparing for the possible accession of Bosnia and Herzegovina to the European  Union. Although we are aware of the fact that  Bosnia nad Herzegovina is still away from the European Union, and that because of visas the entry in the European Union countries for citizens of Bosnia and Herzegovina is difficult, the Central Bank of Bosnia and Herzegovina wants to go forward and get closer to the European Union with the implementation of European central banking standards."

 

This project is the follow-up on the needs assessment programme of the Central Bank of Bosnia and Herzegovina, which was implemented in 2007 by the European Central Bank, with the financial support of the European Union. At that time the assessment of the situation was done in seven areas of the Central Bank of Bosnia and Herzegovina operations, and the benchmarking with the European System of Central Banks standards was conducted. On that basis, the Central Bank of Bosnia and Herzegovina received a „Road map", in other words the recommendations that it should implement to harmonize its activities with the European standards. The recommendations that have been given were mostly implemented by the capacities of the Central Bank of Bosnia and Herzegovina itself.

„If we look back over the last couple of years, the Central Bank of Bosnia and Herzegovina was the first central bank of the current candidate and potential candidate countries for joining the European Union to work closely with the European Central Bank and partner central banks on a needs-analysis project. This job was carried out in 2007. and resulted in a list of recommendations on how to bring the Central Bank of Bosnia and Herzegovina into line with European Union central banking standards. Today, the Central Bank of Bosnia and Herzegovina is again taking the lead: it is the first central bank to announce a programme of technical cooperation following an earlier needs analysis", said Gertrude Tumpel-Gugerell, the Member of the Executive Board of the ECB.

Dimitris Kourkoulas, Head of the Delagation of the EU, in his speech indicated main tasks and goals of this project. He also stressed that the CBBH can continue to count on the European Union full support and cooperation for the Bosnia and Herzegovina's road to the EU.

„The CBBH is one of the of the strongest institutions in the country, enjoying a high reputation and stands as the pillar of monetary stability. With that in mind, the European Union stays dedicated to providing support to the CBBH by assuring technical assistance aimed at further allignment of the CBBH towards Eurosystem central banks standards...And beyond this project, the European Union is committed to continue its cooperation and support to the CBBH which needs to meet the challenges of developing economy and European integration," said Kourkoulas.

The emphasis of the conference is on the fact that many banks which operate in BH are owned by banks from the European Union. It is mentioned, therefore, that the ECB and its partners have a keen interest in BH and Western Balkans. An integrated international economy is a reality, and that causes a close association of the European Union economy and the economies of its neighbouring countries.

The project will take 18 months, started from April 1, 2010. It will cover six different areas, of which the first three are covered based on the recommendations from the 2007 project: 1) statistics, 2) economic analysis and research, 3) financial stability, 4) harmonization of legislation with the EU, 5) coordination of integration with the EU and 6) the information technologies service upgrade in the Central Bank of Bosnia and Herzegovina. Governer Kozarić pointed out why this project is significant, in this areas especially:

„In the next 18 months, starting from April 1, 2010, within the technical assistance programme, the experts from the European Central Bank and the seven central banks members of the Eurozone will provide assistance to the Central Bank of Bosnia and Herzegovina in upgrading the areas of great significance for the road of Bosnia and Herzegovina to the European Union. It is very important for the reports, the methodology, the assessment or the legislation of the Central Bank of Bosnia and Herzegovina to be harmonized with the European standards, that will provide the understanding and stronger cooperation with the European Central Bank and the central banks of the Eurozone. Because of that, this project will cover the statistics, the economic analysis and research, the financial stability, the harmonization of legislation with the European Union, the coordination of integration with the European Union and the information technologies services upgrade in the Central Bank of Bosnia and Herzegovina."

The importance of these areas, when it comes to the road to the EU, was stressed by Gertrude Tumpel-Gugerell too, as she said:

„We are very pleased that you, Mr Governor, on behalf of your board and staff, have invited the Eurosystem to work with you again on this technical cooperation programme. The aspirations of Bosnia and Herzegovina to join the European Union and its status as a potential European Union candidate country imply the need to adopt to EU rules and standards. Once the overall conditions are met and Bosnia and Herzegovina joins the European Union, the Central Bank of Bosnia and Herzegovina will join the European System of Central Banks, and its therefore important to continue working towards compliance with the standards and rules relating to central banks."

Except the ECB experts, the project includes experts from seven central banks of the Eurozone countries: Germany, Greece, Spain, Italy, the Netherlands, Austria and Slovenia.

At the end, Governor Kozarić expressed his gratitude to the ECB and central banks of the Eurozone, and to the Delegation of the EU to BH that will support this project with one million euros from the preaccession activities funds.

„Good central banking practice is not only important for the central bank functioning, but also for the good functioning of the overall economy. I believe that Bosnia and Herzegovina and its citizens will benefit from it", Governor Kozarić concluded.

During the program, in order to coordinate the activities, the ECB will appoint a Resident Programme Coordinator in Sarajevo. That will be Mara Wyborny, a central bank expert with experience from the Austrian National bank and the ECB. Her main task will be to coordinate efforts in the six different areas and to provide support in some areas by using her expertise, on a day-to-day basis.

Igor Soldo, Public Relations Senior Specialist - web master