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EBRD TO FINANCE PROFITABLE PROJECTS IN BOSNIA-HERZEGOVINA

SARAJEVO, Feb 22 (Hina) - The European Bank for reconstruction and Development (EBRD), as well as other possible investors, seeks a stable environment and the establishment of legal frames to ensure profitability and safety of investment, but as these conditions in Bosnia-Herzegovina have not been fulfilled, there are no foreign investments, head of EBRD's department for Bosnia-Herzegovina, Croatia, Romania, Ukraine, Moldavia and Belorussia, Lindsay Forbes, said in Sarajevo on Monday. Forbes warned Bosnian authorities must be aware that the significant donors' aide provided so far would cease soon. We are not a humanitarian organisation and we want to finance only those projects that are profitable, and money which we provide through loans must be paid back," he said. The Bank has invested more than 75 Euro in Bosnia-Herzegovina so far. Forbes said Bosnia-Herzegovina must accomplish four things: create a unified
SARAJEVO, Feb 22 (Hina) - The European Bank for reconstruction and Development (EBRD), as well as other possible investors, seeks a stable environment and the establishment of legal frames to ensure profitability and safety of investment, but as these conditions in Bosnia-Herzegovina have not been fulfilled, there are no foreign investments, head of EBRD's department for Bosnia-Herzegovina, Croatia, Romania, Ukraine, Moldavia and Belorussia, Lindsay Forbes, said in Sarajevo on Monday. Forbes warned Bosnian authorities must be aware that the significant donors' aide provided so far would cease soon. We are not a humanitarian organisation and we want to finance only those projects that are profitable, and money which we provide through loans must be paid back," he said. The Bank has invested more than 75 Euro in Bosnia-Herzegovina so far. Forbes said Bosnia-Herzegovina must accomplish four things: create a unified economic environment, implement privatisation and reorganise big companies, strengthen the banking system and improve legal framework. He also warned of absurd occurrences such as the enormous number of banks with minimum capital. According to official data, there are 55 commercial banks in the Bosnian Federation, and 17 in Republika Srpska. The EBRD has so far invested capital directly, through investment programmes, to the Croat Bank in Mostar and Sarajevo's Market Bank. We want there to be four to five strong banks in the Bosnian Federation, and we wish these two banks to be among them, Sarajevo's EBRD Office head Suzana Hargitai said, adding that similar relations should be applied to the Bosnian Serb entity. (hina) lml mm

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