SARAJEVO, Sept 15 (Hina) - Governor of the Central Bank of Bosnia-Herzegovina, Peter Nicholl, has rebutted claims that the country could soon go bankrupt because it allegedly faces chronic insolvency.
SARAJEVO, Sept 15 (Hina) - Governor of the Central Bank of Bosnia-
Herzegovina, Peter Nicholl, has rebutted claims that the country
could soon go bankrupt because it allegedly faces chronic
insolvency. #L#
In a statement released to the media in Sarajevo on Monday, Governor
Nicholl points out that the first thing which proves that the
country is not facing bankruptcy is that its foreign debt is
moderate accounting to 40 per cent of GDP.
The entire foreign debt has so far been completely serviced and its
servicing will not present any problem for the country in the
future, too, Nicholl said warning that rumours about bankruptcy
could only cause damage to the country and discourage foreign
investors.
According to the Central Bank's figures, the country's foreign
reserves have been rising for the past few months, which is not the
case in insolvent countries.
At the end of August this year, the Central Bank's foreign reserves
amount to about 2.4 billion convertible marks (KM). In May alone,
they grew by 10% or rather, 250 million KM.
In the first ten days of September, the country's foreign reserves
grew by another 100 million KM which indicates that the positive
trend has continued after the summer.
One of major problems for Bosnia, Governor Nicholl said, is its huge
foreign trade deficit. In the past five years, the coverage of
imports by exports was about 30 per cent or less.
(hina) sp ms