SARAJEVO, Dec 21 (Hina) - The United States government has decided to discontinue assistance for privatisation in one of Bosnia's two entities, the Croat-Muslim federation, the Sarajevo media reported on Tuesday. Quoting a statement
from the U.S. Agency for International Development (USAID), the media point out the U.S. government is dissatisfied with past achievements in the implementation of a privatisation programme, but also with the work of federation authorities, privatisation agencies, and state companies. The USAID reminds the U.S. has so far invested considerable funds in preparations for privatisation, including in the passing of legislation and the training of personnel, but stresses the entire process has come to a standstill due to political problems. Now it is up to Bosnian authorities and companies to make a political commitment to privatisation, because without it further USAID i
SARAJEVO, Dec 21 (Hina) - The United States government has decided
to discontinue assistance for privatisation in one of Bosnia's two
entities, the Croat-Muslim federation, the Sarajevo media reported
on Tuesday.
Quoting a statement from the U.S. Agency for International
Development (USAID), the media point out the U.S. government is
dissatisfied with past achievements in the implementation of a
privatisation programme, but also with the work of federation
authorities, privatisation agencies, and state companies.
The USAID reminds the U.S. has so far invested considerable funds in
preparations for privatisation, including in the passing of
legislation and the training of personnel, but stresses the entire
process has come to a standstill due to political problems.
Now it is up to Bosnian authorities and companies to make a
political commitment to privatisation, because without it further
USAID investments would be ineffective, says the statement.
The first reaction to the U.S. government decision came from the
manager of the federation's agency for privatisation, Adnan
Mujagic, who said the decision was "very damaging", while
simultaneously conforming he was familiar with the reasons which
led to it.
Mujagic directly accused the companies, which he said were
undecided and late in drafting privatisation programmes. He also
pointed to lateness in the establishment of a privatisation agency
in Herzegovina-Neretva Canton, which he said affected the
integrity of the process.
"This is a severe warning to all companies, the consequences of
which will be incalculable," said Mujagic, and added he was afraid
the federation would lose strategic investors.
Mujagic said he hoped this "misunderstanding" could be settled in a
relatively short time because, he added, without privatisation
there would be no economic reforms which the U.S. so strongly
supported.
(hina) ha