FOREIGN TRADE DEFICIT THREATENS BOSNIA'S STABILITY

SARAJEVO, Oct 31 (Hina) - Bosnia-Herzegovina will face a real possibility of bankruptcy if the current trade deficit continues to increase, the Office of the High Representative to Bosnia (OHR) said on Thursday. #L# OHR spokesman Kevin Sullivan said in Sarajevo that statistical indicators on the economic and financial situation in the country in this year's first six months pointed to a worrisome growth of trade deficit, which could seriously undermine Bosnia's stability. Analysing the current situation in Bosnia, OHR's department for the economy stated that in the first six months, trade deficit in the country reached 3.17 billion convertible marks. During this period, goods worth 4.33 billion marks were imported, but only 1.16 billion convertible marks-worth of goods were exported, which means that imports are covered by exports by only 26.8 percent. According to the OHR, such a trend directly leads to an accumulation of Bosnia's foreign debt, which could become a burning issue for the country. Bosnia's current foreign debt is more than four billion convertible marks. The only way to change this trend is to secure economic growth which should be significantly higher than last year's five percent, Sullivan said. In the coming period the OHR intends to initiate a campaign whose aim will be to secure the development of small and medium-sized businesses. The average salary in Bosnia is about 420 marks. The country is still registering a nominal unemployment rate of about 40 percent. True unemployment, however, is lesser, because a significant number of people are employed in the grey economy. According to assessments of the World Bank, the true jobless rate is probably 20 percent, most entrepreneurs are avoiding to register their business because of exceptionally high taxes and unrewarding registration of private companies. (hina) lml sb