SARAJEVO, June 4 (Hina) - The economic recovery and implementation of necessary reforms in Bosnia-Herzegovina have been brought into question by recent developments in Mostar, Banja Luka and Trebinje, the chairman of Bosnia's Council
of Ministers, Bozidar Matic, warned in Sarajevo on Monday. At a news conference which the council held on the occasion of the first hundred days since the constitution of its incumbent composition, Matic said incidents in Herzegovina and the Bosnian Serb entity discouraged many foreign investors who had wanted to invest in Bosnia. "That's why many preliminary negotiations with foreign investors have been cancelled," Matic said adding that the situation could become worse as some countries would soon discontinue giving direct donations. According latest statistical figures, a rate in Bosnia's growth of Gross Domestic Product (GDP) was lower in first months of 2001 as against earlier,
SARAJEVO, June 4 (Hina) - The economic recovery and implementation
of necessary reforms in Bosnia-Herzegovina have been brought into
question by recent developments in Mostar, Banja Luka and Trebinje,
the chairman of Bosnia's Council of Ministers, Bozidar Matic,
warned in Sarajevo on Monday.
At a news conference which the council held on the occasion of the
first hundred days since the constitution of its incumbent
composition, Matic said incidents in Herzegovina and the Bosnian
Serb entity discouraged many foreign investors who had wanted to
invest in Bosnia.
"That's why many preliminary negotiations with foreign investors
have been cancelled," Matic said adding that the situation could
become worse as some countries would soon discontinue giving direct
donations.
According latest statistical figures, a rate in Bosnia's growth of
Gross Domestic Product (GDP) was lower in first months of 2001 as
against earlier, and for the first time it was expressed by a
single-digit number.
Foreign Minister Zlatko Lagumdzija believes that double digit
figures from the past years did not reflect the real state of
affairs as they were primarily based on foreign donations.
"Without those donations, the real growth rate would have been
negative, i.e. minus one percent," Lagumdzija asserted.
Most members of the incumbent ministerial council maintain that
problems in the economy will not be eliminated as long as the
situation in the country remains like this and as long as the
council functions with extremely limited powers.
Minister Lagumdzija, who is the co-ordinator of the ruling
coalition - Alliance For Changes - confirmed that political talks
were under way on a new law on the Council of Ministers, but there
were no concrete results yet.
He added that the proposals ranged from the enlargement of the
council's powers, the establishment of typical government like in
other countries to a suggestion that the situation should remain
like this.
"At the moment we can say that there is no consensus of
parliamentary majority on the issue," Lagumdzija said.
According to the Alliance's decision, a draft act on the Council of
Ministers should be forwarded into the parliamentary procedure
before 20 June when the term of office of the current council's
chairman, Bozidar Matic, expires.
Most parties from the Republic of Srpska (the Bosnian Serb entity)
oppose changes of the restricted powers and role of the council, and
one of the vociferous opponents is the Party of Democratic Progress
(PDP) of that entity's Premier Mladen Ivanic, without whose support
the Alliance cannot get the necessary parliamentary majority for
the adoption of laws.
(hina) ms