SARAJEVO, Aug 24 (Hina) - Bosnia-Herzegovina has attracted only 550 million euros of direct foreign investments since 1994, which dangerously slows down the recovery of the country's economy, the head of the European Union Mission to
the country, Hans-Joerg Kretschmer, said in Sarajevo last Wednesday.
SARAJEVO, Aug 24 (Hina) - Bosnia-Herzegovina has attracted only 550
million euros of direct foreign investments since 1994, which
dangerously slows down the recovery of the country's economy, the
head of the European Union Mission to the country, Hans-Joerg
Kretschmer, said in Sarajevo last Wednesday. #L#
Kretschmer, who participated in the presentation of a new guide for
potential investors in Bosnia, prepared by the Agency for the
Promotion of Foreign Investments (FIPA), called on the authorities
to seriously consider the need to attract foreign capital as the
country would not be able to leave the current crisis and poverty
alone.
He said that Hungary, which over the past years attracted as much as
27 billion euros of fresh capital, could serve as an example for
other countries.
The business environment in Bosnia must change urgently, the German
diplomat said, reminding that Bosnia-Herzegovina today had a slow
and large administrative system, inefficient judiciary, and
economy divided by entity borders.
Changing these unfavourable circumstances will be the first and
basic task of the local authorities, said the Chairman of the
Presidency of Bosnia-Herzegovina, Beriz Belkic.
Apart from legal reforms, the country expects much also from the
FIPA, which was established with the aim of providing potential
investors with the necessary business information.
Appreciating the role which the Irish agency for the promotion of
foreign investments had in transforming once a very undeveloped
country into a highly prosperous EU member, the EU Mission to Bosnia
has decided to directly support the activities of the FIPA.
So far, the agency has been given one million euros so that it could
start operating and the first visible results include a
comprehensive guide and special brochures on the possibility of
investment in textile and footwear industries and the production of
reserve parts for cars.
On some 100 pages the guide offers a comprehensive insight into
legal, business, macroeconomic, and statistical data important for
potential investors, while the two special brochures provide the
necessary information on the textile and automobile industries.
FIPA director Mirza Hajric announced the creation of a special data
base to be used by companies and individuals interested in
information on potential partners in Bosnia.
(hina) rml