ECONOMY IN BOSNIA STILL UNFAVOURABLE

SARAJEVO, March 26 (Hina) - The recent indicators on the economic situation in Bosnia-Herzegovina show an encouraging progress in the banking sector and in efforts to liberalise trade with countries of the South-east of Europe. All other indicators, however, point to an unfavourable situation. #L# According to an analysis issued by the economy department of the Office of the High Representative (OHR) in Sarajevo, especially encouraging is the fact that commercial banks in the Bosnian Federation for the first time marked profit of 33 million marks. The level of savings has also risen - from 599 million marks at the end of 2000 to 1.3 billion at the end of last year. Bosnia has undertaken concrete steps on the regional plan to fulfil its part of tasks with the aim of liberalising foreign trade. By 2006, 90 percent of trade among countries members of the Stability Pact should be liberalised. Bosnia has so far signed appropriate agreements with Croatia, Slovenia and Yugoslavia. A special problem in Bosnia is unemployment. Indicators gathered by the International Organisation for Migrations show that 431,000 people are unemployed in the country. Unemployment directly affects people to move out of Bosnia. This January alone, 373 people left the country permanently. (hina) lml