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Annual

Report

2013

Central Bank of Bosnia and Herzegovina

Annual Report 2013

Contents
Foreword 6
Legal Status 8
1. Economic Developments in 2013 11
1.1 International Economic Environment 11
1.1.1 Real Sector Trends 11
1.1.2 Monetary Trends 12

1.2 Report on the State of the Economy in BH
13

1.2.1 Real Sector 15
1.2.2 Fiscal Sector 20
1.2.3 Banking Sector 24
1.2.4 External Sector 27
2. Report on the CBBH Operations in 2013
33
2.1 Monetary Policy 35

2.2 Reserves Accounts with the CBBH
36

2.3 Foreign Exchange Reserves Management
39
2.4 Cash Management 44
2.5 Payment System Maintenance 47
2.6 The Fiscal Agent Role 49

2.7 Compiling and Creating Statistical Data
50

2.8 Monitoring Systemic Risks in the Financial System
51

2.9 Cooperation with International Institutions

and Rating Agencies
52
2.10 Internal Audit Process 54
2.11 Other 54

2.11.1 Implementation of Strategic Objectives
54
2.11.2 Human Resources Management 55
3. Financial Statements and Report of Independent External Auditor

4. Publications and Web Services
5. Statistical Tables

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125
129

Central Bank of Bosnia and Herzegovina

List of Tables
IV SBA with the IMF
Liabilities Servicing per III SBA with the IMF
Borrowings of RS and FBH Federation Governments in the Local
Capital Market and Maturity of Liabilities
Average Weighted Interest Rate on Foreign Currency Reserves and
Performed Income of the CBBH
CBBH AWIR and Market Interest Rates in the Period of 2008-2013
Denomination Structure of Money in Circulation as of 31 December, 2013
Survey on Cash Circulation, Destroyed Banknotes and counterfeits
in the period 1998 2013
Recorded Counterfeited Banknotes in 2013
Payments System Transactions through Commercial Banks in 2013
Survey of Cards Transactions via ATM and POS Terminals
Realized Value Abroad of the Cards Issued by BH Banks
Realized Value of Foreign Cards in BH Banks and Shops

21
22

Graph 1.1:
Crude Oil Price and Annual Inflation Rates
Graph 1.2:
Main Economic Indicators for South East Europe Countries in 2013
Graph 1.3:
Nominal and Real GDP, Production Approach
Graph 1.4:
GDP Structure by the Consumption-Based Approach
Graph 1.5:
The Main Reasons of Changes in GDP in the First

Three Quarters of 2013
Graph 1.6:
Changes in the Industrial Production Index
Graph 1.7:
Contribution of Individual Areas to Industrial Production Index
Graph 1.8:
Official and Estimated Core Inflation
Graph 1.9:
Annual Growth Rates of the Employed and the Unemployed
Graph 1.10:
Total Expenses on the Basis of Net Wages
Graph 1.11:
The Total Costs of Net Wages in Industrial Production
Graph 1.12:
Foreign Debt of Government Sector and Annual Changes of

Amounts of Foreign Debt Repayment
Graph 1.13:
Balance of Foreign Exchange Reserves at the End of the Month and

Foreign Exchange Reserves Reduced by the Effects of Withdrawal

of Funds from a Foreign Creditor
Graph 1.14:
Annual Changes of Net Income from Indirect Taxes and the

Serviced Government Foreign Debt
Graph 1.15:
Structure of Turnover on BH Stock Exchanges
Graph 1.16:
Quarterly Changes in Foreign Exchange Reserves and Net Foreign

Liabilities of Commercial Banks
Graph 1.17:
Monthly Changes in Items of Foreign Liabilities and

Foreign Assets of Banks
Graph 1.18:
Foreign Exchange Reserves and Exports, Annual Changes
Graph 1.19:
Annual Changes of BAM Nominal Exchange Rate against the

Selected Currencies in December
Graph 1.20:
Nominal and Real Effective Exchange Rate of BAM
Graph 2.1:
CBBH Foreign Exchange Reserves
Graph 2.2a:
The Factors which Influenced Changes in the CBBH Foreign
Exchange Reserves
Graph 2.2b:
Relative Importance of the Factors for Changes in the CBBH

Foreign Exchange Reserves
Graph 2.3:
Coverage of Monetary Liabilities with Net Foreign
Exchange Reserves

11
12
13
14

Table 1.1:
Table 1.2:
Table 1.3:

Table 2.1:

Table 2.2:
Table 2.3:
Table 2.4:

Table 2.5:
Table 2.6:
Table 2.7:
Table 2.8:
Table 2.9:

24
39
41
46
46
47
47
48
48
48

List of Graphs

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16
17
18
19
19
20
21
23
24
25
26
27
28
28
29
33
34
34
35

Annual Report 2013

Graph 2.4:

Graph 2.5:

Graph 2.6:
Graph 2.7:
Graph 2.8:
Graph 2.9:


Graph 2.10:
Graph 2.11:
Graph 2.12:
Graph 2.13:
Graph 2.14:
Graph 2.15:

Quarterly Changes in Bank Liabilities and Reserve Account


with the CBBH
Changes in BAM Base for RR Calculation and New
Foreign Public Debt
New Loans and New Deposits of Residents in BAM
Money Multiplication
Balances in Reserve Accounts with the CBBH
Trends of the Weighted Average Interest Rate on the CBBH Foreign
Currency Reserves and the Market Interest Rates in the Financial
Market of Euro Area (annual averages)
Average Annual Rates of Yield on CBBH Foreign Exchange Reserves
Structure of Investing Foreign Exchange Reserves of the CBBH
Cash outside the Monetary Authorities
The Number of Employees in the CBBH
Age Structure of Employees
Gender Structure of Employees

ABBREVIATIONS
ATM
BAM
BH
BHAS
CBBH
CPI
CRC
EBRD
ECB
EIB
EMU
ESCB
EU
EUR
FBH
FED
GDP
IMF
ITA
NEER
OCAE
POS
REER
RS
RTGS
SCFS
SDR
SRTA
USA
USD
VAT

automatic teller machine


convertible mark
Bosnia and Herzegovina
BH Agency of Statistics
Central Bank of Bosnia and Herzegovina
consumer price index
Central Registry of Credits
European Bank for Reconstruction and Development
European Central Bank
European Investment Bank
European Economic and Monetary Union
European System of Central Banks
European Union
euro
Federation of Bosnia and Herzegovina
U.S. Federal Reserves
gross domestic product
International Monetary Fund
Indirect Taxation Authority
nominal effective exchange rate
Office of the Chief Audit Executive
point of sale machine
real effective exchange rate
Republika Srpska
real time gross settlement
Standing Committee for Financial Stability
special drawing rights
Single Registry of Transaction Accounts
United States of America
U.S. dollar
value added tax

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40
44
44
45
57
58
58

Foreword
Although operating in a very complex
environment, the CBBH has met its primary
goals completely - a comprehensive and
credible implementation of Currency Board
arrangement and the price, monetary and
financial stability. By fulfilling the mandate
- defined tasks, the CBBH continued close
cooperation with other institutions of
Bosnia and Herzegovina on the issues of
achieving financial stability, and the CBBH
representatives gave their full contribution
to participation in the work of bodies such as
the Deposit Insurance Agency of Bosnia and
Herzegovina, the Standing Committee on
the Financial Stability of BH and BH Fiscal
Council.

Dear readers,
The Article 64 of the Law on the Central
Bank of Bosnia and Herzegovina (Official
Gazette of Bosnia and Herzegovina No.
I/97) defines the obligations of the Central
Bank of Bosnia and Herzegovina (CBBH)
to submit to the Parliamentary Assembly
of Bosnia and Herzegovina the following
documents within three months after the
end of the financial year:
- Report on the State of the Economy;
- Report on its Operations during the year; and
- The Financial Statement certified by the
auditor;
CBBH Annual Report 2013 was adopted at
the 5th session of the Governing Board of the
CBBH, held in Sarajevo on 31 March of 2014.
The 2013 can be evaluated as a year of
mild economic recovery in Bosnia and
Herzegovina, with a growth of 1.51%, which
has been mostly affected by the industrial
production growth (6.4%), exports of
electricity and significantly reduced imports.

During 2013, the CBBH continued to


rationalize the costs and it performed certain
savings and profits higher than planned.
Although not profit organization, the CBBH
managed to close up 2013 with a profit in
the amount of KM 30,085,933.24, and 60%
of this amount - BAM 18,051,559.94 is
to be transferred into the budget of Bosnia
and Herzegovina. Thus, in the period from
2004 to 2013, inclusive, the Central Bank
has made a profit of KM 728.6 million, and
60% of this amount, or KM 380.9 million was
paid into the budget of BH institutions.
Over the past year, the CBBH has successfully
performed all the functions in accordance
with its mandate. Investment Committee of
the Bank, strictly following the Investment
Guidelines set by the CBBH Governing Board
successfully answered all the defined tasks
in complex market conditions, managing
the Banks portfolio in a safe and profitable
way. The CBBH continued with successful
cash management, taking into account the
structure and quality of the denominations
in circulation, which was an extremely
challenging task, considering the fact that
we closed the year with KM 2.91 billion of
cash in circulation, which is the highest total
value of cash in circulation since the start of
the CBBH operations.

During the previous year, through the


CBBH payment and settlement systems,
KM 35.8 million transactions was realized,
and no technical issues were recorded in
the operation. During 2013, the CBBH also
successfully completed all of its obligations
as the state fiscal agent - regularly serviced
all the obligations of the state of Bosnia
and Herzegovina to external creditors that
have matured over the year, and CBBH also
completed all the necessary preparations for
the missions of the credit rating agencies Standard and Poors and Moodys, i.e. the
representatives of these two Agencies had
at their disposal all the conditions provided
and relevant information necessary for the
operation of the sovereign rating assessment.
During the last year we also continued with
the upgrading of business operations in the
CBBH, among which we should point out the
process of implementing a new IT platform
for statistics, based on Business Intelligence
(BI), including an entirely new platform for
disseminating information on the Central
Bank website. With this project, the CBBH
has made a significant step forward in the
quality of storage, processing and use of
statistical data, because, today, the interested
users have real-time access to all the statistics
produced by the CBBH, and with the tools
for analysis and adjustment of data they can
quickly produce reports in accordance with
their needs. In addition to applications in
the domain of statistics, we continued with
the development of IT infrastructure also
for other sectors in the CBBH, where we
should emphasize a new software application
for registration of counterfeited money
and the software application for human
resource management. The new applications
for counterfeits registration, recording
and reporting on counterfeited banknotes
enables far more efficient data management,
providing a quick access to all the agencies to
which these data are essential. These projects
ensure continuous implementation of the EU

standards and the CBBH is certainly going to


continue with the analysis and improvement
of business processes.
In addition to improving the automation
of business processes, the CBBH continued
the consistent implementation of strategies
in human resource management, paying
particular attention to the career development
of young professionals in the field of central
banking to ensure that the CBBH has
the highest quality human resources in
performing its functions. In this respect, it is
worth to mention the technical cooperation
realized with the Deutsche Gesellschaft
fr Internationale Zusammenarbeit (GIZ)
GmbH, Swiss State Secreteriat for Economic
Affairs - SECO and academic cooperation
with the university of St. Anthony Colleage
in Oxford, where with the assistance of
these programs, we continuously strengthen
institutional and professional capacities of
the Bank, but through such like cooperation
and international conferences, we also
promote the economic environment and
the possibility of investment in Bosnia and
Herzegovina. In addition to regular business
processes, the CBBH continued the practice
of corporate social responsibility, through
which, in accordance with the capabilities
and legal limitations, gave its contribution to
the development of the wider community.
I would like to thank to the Governing
Board, the Management and all the CBBH
employees, whose professional attitude is
the cause of all the results achieved in the
previous year, which, despite the complex
and difficult situation, can be assessed as
satisfactory.
Governor
Kemal Kozari, Ph. D.

Legal Status
In accordance with the Constitution - Annex 4
of the General Framework Accord for Peace in
Bosnia and Herzegovina, the Central Bank of
Bosnia and Herzegovina is institution of Bosnia
and Herzegovina, established by the Central
Bank of Bosnia and Herzegovina Law adopted
by the Parliament of Bosnia and Herzegovina
on 20 June 19971 and it became operational on
11 August 1997. The main objectives and tasks
of the Central Bank of Bosnia and Herzegovina,
established by the Law on the Central Bank of
Bosnia and Herzegovina are:

1
Official Gazette of BH,
No: 1/97,29/02,13/03,14/
03,9/05,76/06 and 32/07.

- to achieve and maintain stability of the


domestic currency (convertible mark)
issuing it with full coverage in freely
convertible foreign currency, according to
the arrangement known as a currency board
and fixed exchange rate: one convertible
mark for one Deutsche Mark. From 1
January 2002, convertible mark has been
pegged to the euro at the exchange rate: one
convertible mark equals to 0.511292 euro,
one euro = 1.955830 marks;
- to define and control the implementation
of monetary policy of Bosnia and
Herzegovina;
- to maintain the official foreign exchange
reserves and manage them in a safe and
profitable way;
- to maintain adequate payment and
settlement systems;
- to coordinate the activities of the Entities
Banking Agencies, being responsible for
bank licensing and supervision of banks;
- to accept deposits from Bosnia and
Herzegovina level institutions and deposits
of Entities and their public institutions on
the basis of a joint decision of Entities, as
well as deposits of commercial banks;
- to issue regulations and guidelines for the
performance of the Central Bank of Bosnia
and Herzegovina operations, under the
authority established by the Law on the
Central Bank of Bosnia and Herzegovina;
- to participate in the work of international
organizations, strethening the financial and
economic stability, and to represent Bosnia
and Herzegovina in intergovernmental
organizations on monetary policy issues.

Central Bank of Bosnia and Herzegovina is fully


independent from the Federation of Bosnia and
Herzegovina, from Republika Srpska, and any
public agency or authority aiming to have the
objective implementation of its tasks. Central
Bank of Bosnia and Herzegovina conducts its
activities through the Governing Board of the
Central Bank of Bosnia and Herzegovina, the
CBBH Management and the staff.
The Central Bank of Bosnia and Herzegovina
Governing Board is the body of the Central
Bank of Bosnia and Herzegovina in charge of
setting the monetary policy and control of its
implementation, organization and strategy of
the Central Bank of Bosnia and Herzegovina,
in accordance with the authorizations defined
by Law on the Central Bank of Bosnia and
Herzegovina. The Governing Board of the
Central Bank of Bosnia and Herzegovina
features five members appointed by the
Presidency of Bosnia and Herzegovina, and
the members among them elect the Governor,
who is also the chairman of this body and of
the CBBH Management. The Governor is the
chief executive officer in charge of the daily
operations of the Central Bank of Bosnia and
Herzegovina.
The CBBH Management, consisting of
Governor and three Vice Governors (appointed
by the Governor, with the approval of the
Central Bank of Bosnia and Herzegovina
Governing Board), at the order of the
Governor, as chief executive officer, performs
the operational activities of the Central Bank
of Bosnia and Herzegovina and coordinates the
activities of organizational units.
To control the risk in the Central Bank of Bosnia
and Herzegovina, the Governor, with the
approval of the Governing Board of the Central
Bank of Bosnia and Herzegovina, appoints the
Chief Audit Executive and Deputies to the
Chief Audit Executive.
Operations of the Central Bank of Bosnia and
Herzegovina are performed through its Head
Office based in Sarajevo, three Main Units
located in Sarajevo, Mostar and Banja Luka and
two Branches in Pale and Brko District.

Economic
Developments in 2013

Annual Report 2013

1.1 International Economic


Environment
1.1.1 Real Sector Trends
Global activity has strengthened in the second
half of the year, and further improvement is
expected in the next two years2. The latest
projections of the IMF forecast the global
growth of 3.0% for 2013, and 3.7% for 2014
and 3.9% for 2015. This growth was the
consequence of the recovery in developed
countries, and, through the increased
demand, it could have positive effects on
developing countries, too. However, some
economies continue to show extreme
vulnerability, indicating further presence of
risk on reduction of growth. Deformation
of the loan portfolio and capital outflows
particularly affect certain markets, as well as
tighter global financial conditions. Structural
reforms remain the focus for increasing
growth, with regard to fiscal consolidation
and continuation of monetary policy trends
from previous years.
Growth in U. S. GDP was 1.9% (-0.9%
compared to 2012). Although the first part of
the year had not recorded significant growth,
the second half of the year recorded a growth
rate of even 3.7%. A major driver of growth is
private consumption, which makes for more
than two thirds of the U. S. GDP. The increase
in income and prices of stocks and real estate,

11

along with a slight drop in unemployment


(7.6% compared to 8.1% in 2012) contributed
to the recovery in consumption. Companies,
too, increased investment thanks to the
recovery of profitability, low interest rates and
reducing of the uncertainty that had been the
feature of the previous year.
The stagnation of GDP in the EU28 (growth
of 0.1%) marked 2013, while the euro zone
recorded the decline of 0.5%.3 Although the
strongest economy shows recovery, southern
peripheral EU countries are still faced with
difficulties and negative growth rates of GDP.
The financial sector and banks asset quality
in both leading and peripheral economies
continue to pose a potential threat to the
further recovery and growth. Conditions in
the labor market in the EU have not recorded
an improvement, and the unemployment
rates in December in the euro area and in the
EU28 are approximately equal to those of the
last year and amounted to 12.0% and 10.7%.
With the declining trend in oil prices on world
markets (Graph1.1), high unemployment,
reduction of wages (particularly in
countries that are struggling with a lack of
competitiveness), and weak demand in the
EU, along with measures of savings in some
countries, have resulted in deflationary
pressures. So with the end of the year, the
annual inflation in the euro zone was at the
level of 0.8%, while in the EU28 it amounted
to 1.0%.

Graph 1.1: Crude Oil Price and Annual Inflation Rates


8%

120

6%

100

4%

80

2%

60

0%

40

-2%

20

-4%

0
3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12
2008

2009

Inflation in USA
Source:ECB, EUROSTAT and Bureau of Labour Statistics

2010

2011

Inflation in Euro Area

2012

2013
Oil Price in EUR/Barrel, Brent (rhs)

2
World Economic
Output, update, IMF,
January 2014

Source: EUROSTAT

12

Central Bank of Bosnia and Herzegovina

Graph 1.2: Main Economic Indicators for South East Europe Countries in 2013
10%
5%
0%
%

-5%
-10%
-15%
-20%
GDP Growth
ia
on
ed
ac
M
of
YR

Inflation

ti
oa

Cr

Budget Balance (% of GDP)

Se

t
on

ro

eg

en

i
rb

ria

ga

l
Bu

Current Account Balance (% of GDP)

ia

an

b
Al

ia

an

m
Ro

BH

Source: IMF

In the countries of the region, there was a


slight recovery, with the exception of Croatia,
which is still in recession according to official
indicators.

1.1.2 Monetary Trends


During 2013, FED kept its benchmark interest
rate at a level between 0.00% and 0.25%. At
the December session, the decision was made
to reduce the bond purchase program by 10
billion dollars, to the level of 75 billion dollars
monthly. This decision will apply from January
2014. FED has made the statement that this
decision was taken because since October a
moderate recovery of the U.S. economy has
been recorded, then the further progress of
the labor market and that the unemployment
rate, though still high, has declined. Officials
of the FOMC consider that the inflation rate is
still significantly below the target level of 2.0%,
which could pose a threat to the local economy.
In the above statement it is pointed out that the
FED will continue to keep interest rates at low
level until the unemployment rate is above the
level of 6.5%, but also quite a long time after it
is reduced below this level, and that the further
steps of FOMC will depend on the economic
indicators in the future.
In 2013, central banks of the leading
economies have continued with the policy
of extremely low interest rates, as well as
programmes of quantitative easining. In the
first quarter of 2013, the ECB did not change
its benchmark interest rate, i.e. this rate was
maintained at the level of 0.75%, where it

stood since July 2012 with the explanation


that its same level maintenance results from
the improved market indicators. Despite the
visible strengthening of the confidence in the
European financial markets and stable euro
zone economic indicators, the economic
activity in the euro zone was still weak. In
May 2013, the ECB lowered the benchmark
interest rate by 25 basis points to a level of
0.5%, with the ECB deposit facility interest
rate remained unchanged at a level of 0.0%,
while the marginal lending facility interest
rate decreased to 1.0% . For the first time, the
ECB Governing Council openly discussed the
possibility of reducing deposit facility interest
rate below 0,0%, while stating that there were
many complications and consequences that
could arise from the above mentioned, and
that those must be carefully considered. Such
a decision of the ECB has been expected by
analysts for some time, especially because of
the bad economic situation in the euro zone
and high unemployment rate. During the third
quarter of 2013 benchmark interest rate of the
ECB has not changed.
At its meeting in November 2013, the ECB
adopted an unexpected decision to reduce the
benchmark interest rate by 25 basis points,
to the historically lowest level of 0.25%. The
interest rate at the ECB marginal lending
facility was decreased by 25 basis points to
0.75%, while the rate at the ECB deposit
facility remained unchanged at a level of
0.0%. The ECB published the statement that
this decision had been made on the basis of
the latest data on the movement of inflation
recording the level below 1%, which suggests

Annual Report 2013

that the inflation could remain at the low level


for longer period of time, after which, the
slight growth is expected. It was stated that
in accordance with that, the monetary policy
will remain flexible as long as it is needed,
and that the ECB expects the interest rates
to remain at current or lower level for longer
period of time. It was also decided to continue
with the implementation of unlimited credit
at a fixed interest rate through operations on
the money market as long as necessary. The
level of the reference interest rate of the ECB
of 0.25% is held by the end of 2013.
During 2013, FED kept its benchmark
interest rate at a level between 0.00% and
0.25%. At the December session, the decision
was made to reduce the bond purchase
program by 10 billion dollars, to the level of
75 billion dollars a month. This decision will
apply from January 2014. Fed released the
statement that this decision had been taken
because since October, the U. S. economy
recorded a moderate recovery, then the
further development of the labor market
and that the unemployment rate, though still
high, had declined. FED officials believe that
the inflation rate is still significantly below the
target level of 2.0%, which could pose a threat
to the local economy. It is expected that the
FED will continue to keep interest rates at low
level until the unemployment rate is above
the level of 6.5%, but considerably after it is
reduced below this level, and that the FED s
further steps depend on economic indicators
in the future.

13

Decisions of the worlds leading rating


agencies on reducing the credit rating of some
members of the euro zone and banks, as in
previous years, contributed to the increase in
instability (fluctuations in interest rates and
yields) in the financial markets.

1.2 Report on the State of the


Economy in BH
When measured by the value of the nominal
GDP and growth of the real GDP, there was
a slight recovery in economic activity in the
country in 2013. According to the CBBH
data, nominal GDP in 2013 amounted to
BAM 26.12 billion (Table 1)4, being an
increase of 1.5% compared to the previous
year5. Using the consumer price index (CPI)
as the deflator, real GDP growth in the 2013 is
estimated at 1.61%6.
Despite the nominal annual growth, economic
activity in the country in the periods after
2008 is quite weak, which could adversely
affect the trend of long-term potential growth
of the country. Graph 1.3 illustrates that the
nominal value of gross domestic product in
2013 is higher by only 5% compared to the
value of five years ago. On the other hand,
the value of gross domestic product with the
neutralized price effect in the period after the
crisis is growing faster than nominal value, as
a result of the downward trend of deflators in
periods after 2008.

Graph 1.3: Nominal and Real GDP, Production Approach


1.20
1.10
1.00
0.90
0.80
0.70
0.60
2006

2007

Nominal GDP in Ratio to GDP in 2008


Source: BHAS and CBBH
Note: GDP in 2013 is the estimate of the CBBH.

2008

2009

2010

2011

2012

2013
Real GDP in Ratio to GDP in 2008

Statistical tables in the


Chapter 5 of this Report
are marked according to
the sequence in Chapter 5,
such as Table 1. Additional
tables located in the text
are marked with ordinal
number of the Chapter
and the ordinal number
of a table in that very
Chapter, for instance: Table
1.1 . Graphs in text are
numerated using the same
analogy.
4

5
In February 2014, the
Agency for Statistics of
Bosnia and Herzegovina
(BHAS) published the
estimates of the GDP for
the first three quarters of
2013. The total deviation
of the GDP estimated
values according to the
CBBH model for the
same period is BAM + 74
million (0.87%).

6
Deflators for the
individual components
of GDP are published
by BHAS. Historically
observed, the CPI and
the GDP deflator have
similar trend, although
not identical. Deviations
are accentuated during
periods of significant
changes in commodity
prices on international
markets. Thus, although
the value of nominal GDP
for 2013 published by the
Agency for Statistics is
likely to be quite similar
to the assessment of the
CBBH, the growth rates of
the real GDP could vary
significantly. According
to BHAS data , the GDP
real growth in the first
three quarters of the 2013
compared to the same
period of 2012 amounts
to 1.88%.

14

Central Bank of Bosnia and Herzegovina

The deflators downward trend, both in


production approach, so as in the expenses
approach in measuring the GDP, suggests
that the real sector is very slow in adapting
to shocks in domestic demand. Low average
core inflation (Sub-section 1.2.1) suggests
that domestic firms are adapting to the
reduced demand, with reducing costs,
rather than reducing the price of the final
products, which could be one of the causes
of high unemployment rate. Considering
the above mentioned, without significant
improvement of the business climate, which
would allow greater flexibility in companies

goods and services in 2013 (Sub-section


1.2.4), along with other components relatively
unchanged, is suggesting that the private
consumption in 2013, at best, is equal to that
in 2012 year 7.
According to data for the first three quarters,
the GDP growth in 2013 is primarily caused
by the growth of activities in the sectors that
make up the industrial production (Graph:
1.5). Although still being important activity
in the GDP structure, the value of trade is
significantly reduced compared to the first
three quarters of 2012, likely as a result of

Graph 1.4: GDP Structure by the Consumption-Based Approach


35.0
30.0

Although according
to these two principles,
the nominal and real
GDP differ significantly,
growth rates have equal
trends. Accordingly,
in 2013, the moderate
growth of GDP is
expected as per
consumption principle.
Since according to the
CBBH data, net export
of goods and services
is less negative in 2013
year as a result of
significant growth in
exports and decrease
in imports, private
consumption must be
equal to or lower than
the one recorded in
2012.

in BAM billion

25.0
7

8
Budget users are
considered to be the
institutions and the
legal entities classified
in statistical areas: O
(Public Administration
and Defence; Mandatory
Social Insurance), P
(Education) and Q
(Health and Social Care).
Off course, such rough
classification is not
perfectly accurate, but
it covers the majority
of institutions being
financed from the
budget.

20.0
15.0
10.0
5.0
0.0
-5.0
-10.0
2006

Gross Investments

2007

2008

Government Spending

2009

2010

2011

2012

Non-profit Institutions Spending

2013
Households Spending

Net Exports of Goods and Services


Source: BHAS and CBBH

business policies and investments to expand


production capacities of domestic enterprises,
the weak domestic demand will continue to
be a significant limiting factor in the growth
of economic activity in the country.
Consumption of the population has stagnated
since 2008. (Graph 1.4). Bearing in mind that
the nominal and real annual growth rates
of GDP, according to the production and
expenses approach, are similar, the significant
reduction of the deficit at the account of

weak domestic demand. The value of GDP,


being created by the budget users in the first
three quarters of 2013, is almost unchanged
compared to the same period of 2012, as a
result of the rationalization in the budget
spending8. Significant growth of the GDP
was also recorded due to the increase in
activities related to real estate business and
to construction. In the case of construction,
increase of the value produced in 2013, is
primarily the consequence of construction
activities in the road infrastructure.

Annual Report 2013

15

Graph 1.5: The Main Reasons of Changes in GDP in the First Three Quarters of 2013
100%

share in the total increase

80%
60%
40%
E

20%

0%
-20%
-40%
-5%

0%

5%

10%

Change of the Value Compared to the First Three Quarters of 2012


Source: BHAS

Legend:
Group A: Industrial production; Statistical areas of activities
B (Mining and quarrying), C (Processing industry) and D
(Production and supply with the electricity, gass, steam and air
conditioning).
Group B: Budget users; Statistical areas of activity O (Public
administration and defence; Mandatory social insurance), P
(Education) and Q (Health and social protection)).

Group C: Trade; Statistical area of activity G (Wholesale and


retail, repair of motor vehicles and motorcycles)
Group D: Construction, Statistical area of the activity F
(Construction).
Group E: Real property business; Statistical area of activity L
(Real estate)
F: Other

1.2.1 Real Sector

I Industrial Production and Construction

In Sub-section 1.2.1., a special emphasis has


been placed on industrial production and
construction, given their importance for the
level of economic activity. In addition to the
activities in these sectors, the main trends in
the 2013 general level price have also been
outlined, in addition to trends in employment
and wages.

Industrial production has recorded an annual


growth of 6.4 % in 2013, as the highest recorded
growth rate since 2006. Annual growth rate of
industrial production index of 7.4% has been
recorded in December (Table 03).

16

Central Bank of Bosnia and Herzegovina

Activities in the manufacturing industry,


which recorded an uncommonly high
growth in production volume at the end of
the calendar year and thus had a significant
impact on the level of industrial production
index in 2013 are as follows: manufacture
of fabricated metal products, except for
machines and equipment; manufacture of
food products; manufacture of beverages;
and production of machines and devices. Due
to the extremely poor weather conditions
in 2012, the early 2013 was marked by a
significant annual growth in production and
supply of electricity and gas.

Graph 1.6 illustrates that after an extremely


poor performance in 2012 the industrial
production has now recovered and restored
the trend characteristic of the period following
2008.9 On average, industrial production
index in this period has had an annual
growth by 4.5 index points. Above-average
annual growth of industrial production index
is primarily due to the low growth in 2012.
Aside this effect, industrial production is
characterised by the usual seasonal effects,
including a significant reduction in volume at
the onset of the calendar year and growth in
the second half of the year.

Graph 1.6: Changes in the Industrial Production Index


6

15
10

in index points

-5

-10
-15

-20

in index points

-25
-30

2009

12

12

2010

Deviations from the Trend (lhs)

2011

12

6
2012

12

12

2013
Annual Changes in the Trend

Source: BHAS and CBBH

The trend is an HP
filter of series of
industrial production
indices for the period
of January 2000 to
December 2013.
Deviations from the
trend are the difference
between the original
series and a trend. The
year of 2008 was taken
as the reference period
given the slowdown
in the industrial
production in the
aftermath of the crisis.
9

Further in consideration by statistical areas,


the growth of industrial production on
an annual basis was primarily due to the
growth of the manufacturing industry, that
is, the absence of the usual reduction in the
production volume in the manufacturing
industry at the end of the year (Graph 1.7).

However, not even so big increase in electricity


production significantly mitigated the effects
of the usual reduction of production in the
manufacturing industry at the beginning of
the year.

Annual Report 2013

17

100%

130

80%

120

60%

110

40%

100

20%

90

in index points

Graph 1.7: Contribution of Individual Areas to Industrial Production Index

80

0%
1

10

11

12

2013
Area C

Area D

Area B

IPI (rhs)

Source: BHAS

Legend:
Area B: Mining and quarrying;
Area C: Processing industry

Construction industry has also seen greater


activities compared to 2012, although of
much lower intensity than in industrial
production. In both entities, there is a higher
value of the works performed compared
to the previous year, yet with significantly
different growth rates.10 In 2013, BAM 403.4
million have been secured based on the loan
abroad to finance construction activities
in the country, specifically related to civil
engineering (Corridor Vc and reconstruction
of the existing road network), which is BAM
107.8 million more than in the previous year
of 2012.11
II Prices
The slowdown trend in inflation has been
present since the early 2011, and it continued
in 2013, with the deflationary pressures
emerging in the second half of the year
(Table 04). Annual inflation, measured by

Area D: Production and supply of electricity, gas, steam and


air-conditioning.
IPI: Industrial Production Index

the consumer price index (CPI) in 2013 was


- 0.1%. At the end of 2013, inflation rate of 1.2% was recorded.
Deflation in 2013 is a result of a continuing
trend in the decrease of food and oil prices on
the global markets. Long-term inflationary
trend in BH, measured by core inflation, is
almost zero (Graph 1.8).12 The only significant
differences in core inflation were recorded
in 2010 due to the simultaneous increase in
excise duties on alcohol and tobacco, and the
costs of communications and education. In
the years when the estimated core inflation
is negative, the price index for clothing and
footwear has recorded a significant decrease
compared to the previous year.

10
Weighted growth at the
national level in 2013
is about 3.3% in the
construction sector, with
recorded growth of 4.5%
in the FBH, while the
growth in RS amounted
to 0.8% (share of entities
in total GDP used as
weight).

11
The CBBH Section for
Government Finance
and Financial Accounts
Statistics - the data for
2013.

12
Three price sections
which are strongly
influenced by
commodity prices
in international
markets are: food and
beverages (due to food
prices); housing, water,
electricity, gas and other
fuels (due to the price
of natural gas); and
transport (due to oil
prices). Core inflation
has been calculated by
reducing the official
inflation by effects of
changes in prices in
these three sections.
Official annual weights
for price sections as
published by the BHAS
have been used as
the weights. The only
exception is the year
of 2013, as the price
weights have not been
published during the
preparation of the
2013 Annual Report.
Therefore, price weights
from 2012 have been
used for 2013 as well.

18

Central Bank of Bosnia and Herzegovina

Graph 1.8: Official and Estimated Core Inflation


12%
10%

ILO methodology
treats the category
of population aged
15 and over, living in
private households, as
economically inactive
population; hence,
this category is not
included in the total
number of unemployed,
that is, the total
workforce. According
to administrative data,
this category of the
population is included
in the total number of
unemployed.

8%

13

14
Data according to
the ILO methodology
are annual, while
administrative data
on unemployment are
available on a monthly
basis. Although not an
ideal solution, changes
in administrative
unemployment rate
should be indicative of
changes in the labour
market as long as the
trend is uniform with
the data according to the
ILO methodology.

15
According to the
old classification of
activities, industrial
production in 2012
includes the activities
under C, D and E. In
order to enable direct
comparison between
two periods, the
indutsrial production
in 2013 includes
also E activity (water
supply; sewerage,
waste management
and environmental
remediation), which was
an integral part of the
activity E in 2012.
Activities which
are largely financed
from the budget are
as follows: public
administration and
defence, compulsory
social security;
education; and health
and welfare activities.

6%
4%
2%
0%
-2%
-4%
3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12
2006

2007

2008

2009

Estimated Core Inflation

2010

2011

2012

2013
Offical Inflation

Source: BHAS and CBBH

In addition to deferred spending due to


expectations of further price reductions,
weak domestic demand despite deflation may
be indicative of a very low purchasing power
of the population.
III Employment and Wages
According to data of the BHAS, unemployment
in Bosnia and Herzegovina in December 2013
in line with the ILO (International Labour
Organisation) methodology amounted to
27.50% (-50 bp compared to December 2012),
while the administrative unemployment
rates were at 44.55% (+19 bp compared to
December 2012). Although the unemployment
rates significantly differ across levels, their
trend is nevertheless uniform, indicating that
the difference is largely due to the different
treatment of the population aged 15 and over,
living in private households.13 Accordingly, the
monthly changes in the number of employed
and unemployed by activities should reflect
the basic trends in the labour market. 14

In 2013, the labour market has shown signs of


slight recovery. Upscale trend in the number
of employed also continued, and at the end
of 2013, the annual growth rate is ultimately
positive (Graph 1.9). The increase in the
number of the employed is partly a result
of increased labour inspection activities,
resulting in a significant number of previously
unregistered workers who are now registered.
Only in the hotel industry and catering, the
number of registered employed persons
increased by 3.5% in December compared
to the previous month. A significant shortterm reduction in the number of employed
persons in early 2013 was caused by a drop in
the number of persons employed in trade and
other service activities. Number of employees
in industries that make up the industrial
production and the activities that are largely
financed from the budget has not changed
significantly.15 The trend of a slowdown in
the growth in the number of unemployed
continued in 2013. Moreover, at the end
of the year the number of unemployed per
annum has even marked a decline.

Annual Report 2013

19

Graph 1.9: Annual Growth Rates of the Employed and the Unemployed
4.0%
3.0%
2.0%
1.0%
0.0%
-1.0%
-2.0%
-3.0%
1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12
2012

2013

The Employed

The Unemployed

Source: BHAS

The average net salary in Bosnia and


Herzegovina at the end of 2013 was BAM
838 (Table 05). Total costs of net wages

have not changed significantly compared to


earlier periods (Graph 1.10), thus indicating
significant rigidness of the labour market.

Graph 1.10: Total Expenses on the Basis of Net Wages


200
180
160

in BAM million

140
120
100
80
60
40
20
0

12

2011
Group A

Group B

2012
Group C

12

12

2013
Group D

Group E

Source: BHAS

Legend:
Group A: Industrial production; Statistical activity B (Mining
and quarrying), C (Processing Industry) and D (Production
and supply of electricity, gas, steam and air conditioning). In
2013, this group includes activities under statistical area D in
order to compare data between periods.
Group B: Budget users; Statistical activity O (Public
administration and defence, Mandatory social security), P
(Education) and Q (Health and social protection).

Group C: Trade; Statistical activity G (Wholesale and retail;


motor vehicles and motorcycles repair)
Group D: Other service activities; Statistical activity H
(Transportation and storage), I (Providing accommodation
and food service activities - hotels and catering), J (Information
and Communication), K (Financial and insurance activities),
L (Real estate) and M (Professional, scientific and technical
activities)
Group E: Other

20

Central Bank of Bosnia and Herzegovina

The highest total cost of net salary is in group


B, primarily due to the high number persons
employed in this sector (26.9% of the total
number of employed at the end of 2013),
while their further growth is limited by the
policy of rationalisation of budget expenses.
The cost of the total net salary in group A
is primarily a result of the characteristics of
companies in BH in the field of industrial
production. According to data from the
BHAS, 179 companies, being classified as
large based on the number of employees
(250 and above) operated in 2012. Out of
this number, 64.3% were in the industrial
sector, employing 45.6% in enterprises in
this field of activity. The state is the majority
or a significant owner in a number of these
enterprises, with an emphasised social
factor in such cases, even when it comes to

industrial production. The following graph


illustrates that neither the range, nor the
core inflations plus and minus sign make
a difference when it comes to annual cost
growth in net wages in enterprises in the field
of industrial production.
Unlike the aforementioned two groups,
adjustment in the total costs of net of wages
to changes in the business environment in
fragmented industries with a large number
of small businesses (0-49 employees), such
as group C and E in Graph 1.10, are much
faster. The trend of reducing the total cost of
net wages is particularly prominent in Group
E, which may imply that in the last three
years, the demand for seasonal workers has
significantly reduced, but also that there is a
significant portion of unregistered workers.

Graph 1.11: The Total Costs of Net Wages in Industrial Production


0.6%
0.4%

core inflation

0.2%
0.0%
-0.2%
-0.4%
-0.6%
-0.8%
-1.0%
-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

Annual Changes in Costs of Net Wages


Source: BHAS and CBBH

enterprises with poorer performance than the


rest of the enterprises in the same industry.
In other words, the labour market in these
industries is very rigid, while reductions of
wages are rare (although the increase, albeit
almost continuous, is not significant either).
Graph 1.11 shows the annual change in the
costs of net salaries for a given level of core
inflation in the period from January 2011
to December 2013. While one could expect
significant fluctuations in the cost of net salary
at a low level of core inflation and in line with
macroeconomic trends, this is not the case in

1.2.2 Fiscal Sector


Although the trend for the first three quarters
of 2013 has been positive, the image of
adjustment between budget revenues and
expenses will be complete only with the
availability of data on an annual basis that are
more comprehensive than quarterly data. The
extent of differences in findings depending
on the recording methods of revenues and
expenses during the year is best illustrated
by the fact that the consolidated budget of
the government sector at the end of the year

Annual Report 2013

usually records a deficit despite the surplus


in the first three quarters. According to data
from the Economic and Fiscal Programme,
projected deficit for 2013 is 1% of GDP.
Growth trend in the foreign debt of the
government sector continued also at the
end of 2013, and amounted to BAM 7.40
billion (Graph 1.12). Compared to 2012,
indebtedness, and therefore the level of
foreign exchange reserves, increased by BAM
249.2 million. Due to the high repayment of

21

foreign debt due in the amount of BAM 684.8


million, this increase in net debt has been
significantly mitigated.
The largest amount of funds per individual
creditor is withdrawn on the basis of the SBA.
As a result in 2013, BAM 244.4 million was
engaged (BAM 75.8 million in May, BAM
75.8 million in June and BAM 92.8 million
in October). Table 1.1 gives an overview of
tranches by IV SBA, with SDR 211.4 million
withdrawn by the end of 2013.

Graph 1.12: Foreign Debt of Government Sector and Annual Changes of Amounts of Foreign Debt Repayment
8.0

300

7.0

250
200

5.0
4.0

150

3.0

100

in BAM million

in BAM billion

6.0

2.0
50

1.0

0.0
2009

2010

2011

Foreign Debt of BH General


Government Sector

2012

2013

Annual Changes of the Amount of Foreign Debt Repayment


of BH General Government Sector

Source: Ministry of Finance and Treasury of BH

Table 1.1: IV SBA with the IMF


in SDR million
Tranche

Planned Date
of Funds
Engagement

26.09.2012

II

Date of Funds
Engagement

Engaged
Funds

Repaid
Amount

Outstanding
Debt

26.09.2012

50.7

50.7

15.12.2012

21.12.2012

50.7

50.7

III

15.03.2013

08.05.2013

33.8

33.8

IV

15.06.2013

28.06.2013

33.8

33.8

15.09.2013

28.10.2013

42.3

42.3

VI

15.12.2013

31.01.2014

42.3

42.3

VII

15.03.2014

0.0

0.0

VIII

15.06.2014

0.0

0.0

253.7

253.7

Total:
Source : BH Ministry of Finance and Treasury

22

Central Bank of Bosnia and Herzegovina

Funds in the amount of BAM 236.0 million


have been withdrawn from the European
Investment Bank (EIB) and BAM 200.8
million from the European Bank for
Reconstruction and Development (EBRD),
which had an impact on the growth of foreign
exchange reserves in the months when
these funds were engaged (Graph 1.13). The
funds from these credit lines are intended
for execution of investment projects in the
field of construction works on Corridor VC
and other investment projects in the field of
gasification and electrification. Although the
net foreign debt of the general government

has increased compared to the previous year,


47.8% of the new debt relates to development
projects that ultimately have a positive effect
on the growth of foreign exchange reserves
and GDP. Funding from the European
Commission in the amount of BAM 195.6
million was engaged in the form of macrofinancial assistance to support the budgets of
the general government so as to eliminate the
adverse effects of the economic crisis. Funds
were engaged in February and September and
have had a positive impact on the growth of
foreign exchange reserves (Graph 1.13).

Table 1.2: Liabilities Servicing per III SBA with the IMF
in SDR million
I - IV
Tranches

Tranche
Instalment

Date of
Repayment

10.10.2012

2012 Total

Amount of
Principal

Repaid Amount

Outstanding
Debt

23

23

315

23

23

315

10.01.2013

23

23

293

10.04.2013

23

23

270

II + III

26.06.2013

15

15

254

10.07.2013

23

23

232

II + III

26.09.2013

15

15

216

10.10.2013

23

23

194

II + III

24.12.2013

15

15

178

137

137

178

2013 Total
I

10.01.2014

23

23

156

IV

17.01.2014

151

II + III

26.03.2014

15

151

10.04.2014

23

151

IV

18.04.2014

151

II + III

26.06.2014

15

151

10.07.2014

23

151

IV

18.07.2014

151

II + III

26.09.2014

15

151

IV

17.10.2014

151

II + III

26.12.2014

15

151

146

27

151

2014 Total
IV

19.01.2015

151

II + III

26.03.2015

15

151

IV

17.04.2015

151

IV

17.07.2015

151

IV

19.10.2015

151

2015 Total

32

151

III SBA TOTAL

338

187

151

Source: BH Ministry of Finance and Treasury

Annual Report 2013

Out of the total amount of the serviced foreign


debt in 2013, 46.5% relate to the servicing of
obligations under III SBA with the IMF (Table
1.2). In 2014, the CBBHs foreign reserves will
be reduced by an additional SDR 146 million
on this basis alone.

23

need for additional government borrowing


on the market.
In 2013, Entities governments have continued
with their policy of borrowing on the
domestic market. Governments have sought
to overcome problems with budget deficits
and liquidity by issuing securities (Table 1.3).
In 2013, BAM 162.0 million were due for
payment on this basis, and according to data
from the end of December 2013, additional
BAM 188.2 million will be due in 2014.

The servicing of liabilities to foreign creditors,


from a single account for the collection of
indirect taxes is a priority, whereby the funds
collected from VAT have the most significant
share. Reduction in the inflow of indirect
taxes during 2013 (Graph 1.14) resulted in the

Graph 1.13: Balance of Foreign Exchange Reserves at the End of the Month and Foreign Exchange
Reserves Reduced by the Effects of Withdrawal of Funds from a Foreign Creditor
7.2
7.0

in BAM billion

6.8
6.6
6.4
6.2
6.0
5.8
5.6
1

10

11

12

2013
Foreign Exchange Reserve Balance

Foreign Exchange Reserves Reduced by the Withdrawal of Funds from a Foreign Creditor

Source: CBBH

Graph: 1.14: Annual Changes of Net Income from Indirect Taxes and the Serviced Government Foreign Debt
800
600

in BAM million

400
200
0
-200
-400
-600
2007

2008

2009

2010

2011

Annual Changes of Net Income from Indirect Taxes


Source: Indirect Taxation Administration and Ministry of Finance and Treasury of BH

2012

2013

Annual Changes of the Amount of Serviced Foreign Debt


of the General Government

24

Central Bank of Bosnia and Herzegovina

Table 1.3: Borrowings of RS and FBH Federation Governments in the Local Capital Market and
Maturity of Liabilities
Entity

Date of Auction

Maturity

Performed Amount of
the Emission
(in BAM million)

FBH

25.09.2012

26.09.2014

20.0

FBH

27.11.2012

27.05.2013

30.0

FBH

11.12.2012

12.06.2013

30.0

RS

21.01.2013

21.01.2014

24.1

FBH

19.03.2013

18.09.2013

29.7

RS

28.03.2013

27.09.2013

52.2

RS

15.04.2013

15.10.2013

20.1

RS

23.05.2013

23.05.2014

21.6

FBH

04.09.2013

05.03.2013

29.7

FBH

17.09.2013

18.06.2014

19.8

RS

26.09.2013

27.03.2014

52.2

RS

23.12.2013

24.06.2014

20.8

FBH

23.12.2013

24.12.2016

40.0

Total:

390.2

Source: SASE & BLSE

Structure of turnover on the stock market


shows the absence of foreign investors and
the dominance of government debt securities,
considering that other instruments of capital
have rarely been traded (Graph 1.15).
Domestic banks are the majority buyers of the
government debt.
1.2.3 Banking Sector
Deposit and lending activities, regulatory
requirements, as well as the need of

commercial banks for national and/or foreign


currency affects the balance of net liabilities
of commercial banks. Compared to late 2012,
net foreign liabilities of the banking sector
have been reduced by BAM 380.1 million,
which was directly reflected in the reduction
of foreign exchange reserves. Compared to
the years noting an unusually large increase
in foreign debt that has neutralised the effects
of bank deleveraging (such as in 2009 and
2011), the effect of changes in net foreign
liabilities of banks on the foreign exchange
reserves was evident in 2013 (Graph 1.16).

Graph 1.15: Structure of Turnover on BH Stock Exchanges


100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2009
Equity Securities
Source: SASE and BLSE

2010

2011

2012

2013
Debt Securities

Annual Report 2013

25

Graph 1.16: Quarterly Changes in Foreign Exchange Reserves and Net Foreign Liabilities of Commercial Banks
800
600

in BAM million

400
200
0
-200
-400
-600
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2009

2010

Changes in Foreign Exchange Reserves

2011

2012

2013
Changes in Net Foreign Liabilities of Banks

Source: Tables 09 and 24

Reduction of the foreign liabilities, that


is, the foreign debt of commercial banks
has continued in 2013. Deposits of nonresidents that are mostly denominated in
foreign currencies were lower by BAM 118.7
million at the end of 2013 compared to the
end of 2012. The securities from one of the
banks whose buyer was a non-resident was
also due in 2013, thus further reducing net
foreign liabilities on an annual basis by BAM
100 million. The repayment of loans when
becoming due, as well as the early repayment
in certain cases, have exceeded the level of new
borrowings from commercial banks abroad.
Reducing the liabilities under loans was not
as dramatic as in earlier periods (BAM 38.8
million annually) primarily thanks to the
withdrawal of the new special - purpose
credit lines relating to direct investments
in economic activities and infrastructure
(Graph 1.17). These three categories account
for 67.7% changes in the net foreign liabilities
of banks compared to 2012.
The value of debt securities by non-residents
in bank assets increased compared to 2012 by
BAM 69.8 million, which accounts for 18.4%
of changes in net foreign liabilities of banks
(Graph 1.17).
Bearing in mind that the foreign liabilities
of banks had grown in periods of credit
expansion due to inadequate maturity
structure of domestic sources of financing,

the continuation of the deleveraging process


suggests that domestic sources of financing
are sufficient to settle a significant portion
of the current demand for loans. The annual
growth rate of loans in December 2013
amounted to only 2.9%. As of mid-2013, there
is a noticeable change in the dynamics of
growth of receivables by sectors in the sense
that receivable from the households begin to
grow significantly faster than the receivables
from non-financial enterprises (Tables 14 and
15).
The growth of non-performing loans, an
increased risk aversion and more strict
requirements for approval of loans, along
with the weak domestic demand, have shaped
the lending activity to enterprises. Out of
BAM 3.57 billion of new loans approved to
enterprises, as many as 60% are short-term
loans. This is indicative for short-term liquidity
problems of enterprises, as evidenced by the
increase in the number of blocked accounts
in BH that the CBBH regularly reports, as well
as a growing amount of outstanding claims
between enterprises, which are overcome by
these borrowings. Hence the growth of total
loans of non-financial public and private
enterprises on an annual basis amounts
to only BAM 132.1 million. Unfavourable
expectations act as a limiting factor for longterm investments and lending activities. For
further recovery of economic activity in the
country, and consequently the placement

26

Central Bank of Bosnia and Herzegovina

Graph 1.17: Monthly Changes in Items of Foreign Liabilities and Foreign Assets of Banks
600
400

in BAM million

200
0
-200
-400
-600
-800
1

10

11

12

2013
A

Source: CBBH

Legend:
A: Vault cash
B: Non-residents deposits
C: Securities (other than shares) - Assets
D: Deposits

of more long-term loans in this sector, it is


necessary to expedite the implementation
of structural reforms and attract foreign
capital, as well as to have a recovery in
domestic demand. Structural reforms also
condition many aid funds to help different
industries. The increase in foreign demand
could perhaps be expected given the positive
indicators from the countries that are major
trading partners (with the exception of
Croatia). The actual effect of such demand to
the increase of credit-export activities in the
country still depends on the movement of
prices and competitiveness of BH products
on the market.
The poor state of the labour market and
uncertainty about future income, as well
as more strict conditions for credits, all
determine the exposure towards the retail
sector. Although the amount of new loans
disbursed amounted to BAM 2.36 billion,
total net loans growth of this sector is merely
BAM 267.2 million. Household loans have
also recorded an upscale trend in short-term
lending relating primarily to consumer loans
with servicing of pre-existing obligations.

E: Borrowings
F: Securities - Liabilities
G: Other foreign assets (net)

The height of lending interest rates that


do not show significant reduction are also
discouraging for both sectors (Table 10a),
while the unstable political and economic
situation in the country has put pressure on
the increase in risk premiums.
The only sector that has marked an increase
is the government sector. With significant
borrowing through securities, the government
sector has increased its indebtedness to banks
in the form of loans by BAM 76.0 million, of
which about 80% are short-term loans.
The banking system in BH has ended its 2013
business year with a negative financial result.
The loss at the level of the banking system,
according to final, unaudited data of banking
agencies, amounted to BAM 36.12 million and
was primarily the result of poor performance
of five banks that participate in total assets
of the banking sector with 13.92%, while the
majority of banks in the banking system has
had positive financial results, with the profit
concentrated in several of the largest banks in
the system.

Annual Report 2013

1.2.4 External Sector


I Balance of Payments
The most significant differences in the
balance of payments compared to 2012 are
the following: the current account deficit was
lower due to a deficit decrease in goods account
and an increase in primary income; there was
a smaller inflow of other investments; and a
decrease in portfolio investments and other
assets (Table 19). Secondary income, primarily
remittances and social transfers from abroad,
continues to represent the most important
item financing the current account deficit
(64.9% in 2013), but its value in 2013 is almost
unchanged compared to 2012 (Table 20).
The growth of foreign exchange reserves in
2013 (Chapter 3) is mainly caused by changes
in the trade deficit as a substantial growth in
exports has had a positive effect on foreign
exchange reserves (Graph 1.18). Considering
that export growth in BH is traditionally
based on intermediate goods exports, the
impact of global prices and demand in the
neighbouring countries and the EU as its
main trading partners, has predominately
influenced the movement of exports. On
the other hand, imports are dependent on
domestic consumption, which is stagnating
as the case was in previous years, but also on
the price of oil and petroleum products in

27

the global market. As a result of significant


growth in exports of goods (8.7% or BAM
438.0 million per annum) and the stagnation
of imports of goods (down by 1.52% or BAM
205.1 million), the trade deficit has been
reduced by BAM 643.3 million (6.62%).
Export growth is based on the growth
in electricity production, in part, as well
as favourable pricing trends. Favourable
developments in the real sector and improved
competitiveness which is reflected in the
depreciation trend of the real effective
exchange rate (Table 37), as well as an increase
in demand and the revival of economic
activity in the EU, have all contributed to
export growth. Export of electricity is mainly
focused on the countries of the region, with a
prominent increase in exports to Croatia, and
Serbia to a lesser extent. Compared to 2012,
export of electricity was more than three
times higher.16 Net effect of exchange with
foreign countries is positive, and its nominal
value of BAM 351.4 million was higher by
about 35 times compared to the previous year.
The decline in imports in 2013 was most
significant in the case of mineral products
(as well as gas, due to favourable weather
conditions), food products and chemical
industry products. The decline in imports of
food products is a signal that there has been
some substitution with domestic products in

Graph 1.18: Foreign Exchange Reserves and Exports, Annual Changes


50%
40%
30%
20%
10%
0%
-10%
-20%
-30%
Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3
2009
Foreign Exchange Reserves (rhs)
Source: Tables 24 and 25

BH Agency of
Statistics, Statistics of
BH trade with foreign
countries, January December 2013 (index
of the electricity export
is 314.3%), www.bhas.ba

16

2010

2011

2012

2013
Exports

28

Central Bank of Bosnia and Herzegovina

consumer goods (milk and dairy products,


meat products, and tobacco and alcohol),
especially due to the decrease in imports
from Croatia, but also due to the growth of
agricultural production. On the other hand,
the price effect, the reduction in oil and food
prices on the global market, have further
contributed to the reduction in imports and
trade deficit.
Primary income has been increased by BAM
280.7 million (220.8%) compared to 2012,
primarily due to reduction on the demand
side of this item in the balance of payments.
The largest decrease in this item has been
recorded as a result of an increase in claims
arising from reinvested earnings abroad.
Other investments compared to 2012 have
decreased by BAM 203.2 million (14.83%),
primarily as a result of the process of
bank deleveraging (BAM 364.7 million),
a reduction of trade credits and advances
(BAM 55.6 million), an increase in deposits
of other non-residents (BAM 61.1 million)
and an increase in reserve assets (BAM 636.2
million).

II Nominal and Real Effective


Exchange Rate
In December 2013, BAM rate had nominally
appreciated against the currencies of the
majority of BH main trading partners. There
was also a continuation of the appreciation
trend of the nominal effective exchange rate
(NEER), which started in mid-2010, although
in the last three quarters of 2013, this trend
has been even more pronounced; hence, the
annual NEER appreciated by 2.23 pp. BAM has
nominally appreciated the most in relation to
the Turkish lira, Russian ruble and the Czech
crown (Graph 1.19). Since EUR is an anchor
currency, all nominal changes in BAM are
the result of movement of EUR against other
currencies. On the other hand, depreciation
of the real effective exchange rate (REER)
continues, which is, taking into account the
NEER appreciation trend, solely the result of
price differences between BH and its main
trading partners. At the annual level, REER
is lower by 74 bp, with the depreciation trend
present since early 2012. This trend has been
even more pronounced in 2013, which has a
positive impact on exports for it is an indicator
of the improvement in price competitiveness
of products from BH in the markets of major
trading partners (Graph 1.20).

Graph 1.19: Annual Changes of BAM Nominal Exchange Rate against the Selected Currencies in December
25%

20%

15%

10%

5%

0%

Source: CBBH

G BP

HUF

R UB

US D

CZ K

TR Y

Annual Report 2013

29

Graph 1.20: Nominal and Real Effective Exchange Rate of BAM


110
108

2005=100

106
104
102
100
98
96
94
Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4
2009
NEER
Source: Table 37

2010

2011

2012

2013
REER

30

Central Bank of Bosnia and Herzegovina

Annual Report 2013

Report on the CBBH

31

II

32

Central Bank of Bosnia and Herzegovina

Annual Report 2013

2. Report on the CBBH


Operations in 2013
Gross foreign exchange reserves of the CBBH
on 31 December 2013 amounted to BAM 7.07
billion, representing an increase of BAM 559.8
million (8.6%) compared to the end of 2012.
(Table 24). The value of foreign exchange
reserves at the end of 2013 is historically the
highest recorded value, while a particularly
pronounced growth in foreign exchange
reserves occurred in the second half of 2013
(Graph 2.1).
Graphs 2.2a and 2.2b illustrate the changes in
the factors that determine the level of foreign
exchange reserves. Historically, changes in
domestic demand, and changes in the foreign
debt of the banking and public sectors are
the main factors which determine changes
in foreign exchange reserves. The change in
the trade deficit, with the exception of 2010,
is traditionally the most important item that

determines changes in the level of foreign


exchange reserves (Table 25). In periods of
expansion, it was deepening (represented by
negative values in Graph 2.2a for 2007 and
2008), thus exerting pressure on the level
of foreign exchange reserves. Contractions
in domestic demand during periods of
deteriorating macroeconomic conditions
such as in 2009 resulted in a reduction in the
trade deficit and weakening of the pressure on
foreign exchange reserves. In the period after
2009, the level of trade deficit was significantly
determined also by changes in exports of
goods, which is especially evident in 2012,
when a sharp decline in exports was recorded,
primarily of electricity. Reduction of trade
deficit in 2013 was caused significantly by an
increase in the value of exports, resulting in
the growth of foreign exchange reserves in
the second half of 2013 (Sub-section 1.2.4).

Graph 2.1: CBBH Foreign Exchange Reserves


7.5

in BAM billion

7.0

6.5

6.0

5.5

5.0
2007

2008

Gross Foreign Exchange Reserves


Source: CBBH

2009

2010

33

2011

2012

2013

Average for the Presented Period

Standard Deviation +/-1

34

Central Bank of Bosnia and Herzegovina

Graph 2.2a: The Factors which Influenced Changes in the CBBH Foreign Exchange Reserves
6.0
5.0
4.0

in BAM billion

3.0
2.0
1.0
0.0
-1.0
-2.0
-3.0
-4.0
2007
A

2008

2009

2010

2011

2012

2013
E

Source: CBBH

Legend:
A: Change in net foreign liabilities of banks
B: Change in net external indebtedness of the government
C: Change in direct investments not related to the banking
sector
D: Change in the trade deficit
E: Changes in remittances
F: Other

Note:
Item Other is the difference between the change in foreign
exchange reserves and what is not explained by changes in
items A to E. It is determined to the fullest extent by other
investments that are not related to the banking sector.

Graph 2.2b: Relative Importance of the Factors for Changes in the CBBH Foreign Exchange Reserves
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2007
A

2008

2009
C

2010

2011
D

2012

2013
E

Source: CBBH

Legend:
A: Change in net foreign liabilities of banks
B: Change in net external indebtedness of the government
C: Change in direct investments not related to the banking
sector
D: Change in the trade deficit
E: Changes in remittances
F: Other

Note:
Item Other is the difference between the change in foreign
exchange reserves and what is not explained by changes in
items A to E. It is determined to the fullest extent by other
investments that are not related to the banking sector.

Annual Report 2013

Changes in the amount of foreign debt of the


banking sector are pro-cyclical; in periods
of economic expansion, they cause a growth
of foreign exchange reserves and vice versa
in periods of unfavourable macroeconomic
conditions (Table 09). The process of bank
deleveraging in 2013 has put pressure on
the level of foreign exchange reserves (Subsection 1.2.3).
Since 2009, changes in the amount of external
debt have had a significant impact on changes
in the level of foreign exchange reserves,
especially in periods when public debt is
growing, but its servicing is not yet significant
(Table 22). Unlike these periods (such as 2010
period), the new indebting in 2013 partially
neutralised the adverse effects of foreign debt
servicing (Sub-section 1.2.2).
Impact of the factor Other has significantly
weakened in 2013 compared to previous
periods. This factor should by no means
be identified with the category of other
investments in the balance of payments
since, although it is largely determined by
other investments in non-financial sector,
it is the difference between the change in
foreign exchange reserves and the sum of
the effects of all other factors. Although the
change in direct investments, which are not
related to the banking sector, is not negligible
in terms of change in the level of foreign
exchange reserves, at the time of preparation
of this Annual Report, the data on flows of
foreign direct investment by sectors were not
available.17

35

2.1 Monetary Policy


In 2013 as well, the CBBH has met its objective,
defined by the Law, being the issuance of the
domestic currency under the currency board
arrangement. In accordance with Article 31
of the Law, the CBBH is required to ensure
that the aggregate amount of its monetary
liabilities shall not exceed the equivalent of
its net foreign reserves,18 which has been met
in entirety. In addition, the Central Bank is
required to maintain the General Reserve to
the extent of the amount of the authorised
capital of the bank, which must be at least
five percent of the total amount of financial
liabilities shown in the accounts of the
Central Bank at the end of that financial year.
In accordance with the Law, the total amount
of money (monetary) liabilities of the Central
Bank is at all times the sum of:
(A) all banknotes and coins that were put in
circulation by the central office, main units
and other branches of the Central Bank, and
(B) credit balances of all accounts maintained
in the books of the Central Bank and its
organisational units by resident account
holders.
At the end of 2013, the coverage of monetary
liabilities with net foreign exchange reserves
amounted to 106.1% and was slightly lower
compared to previous years, because the
monetary liabilities have recorded the same
trend despite the significant growth of
reserves in 2013.

in BAM billion

Graph 2.3: Coverage of Monetary Liabilities with Net Foreign Exchange Reserves
8.0

120%

7.0

115%

6.0

110%

5.0

105%

4.0

100%

Considering that data


on flows of foreign
investment for the
first three quarters do
not include retained
earnings, and that the
changes in the flows may
vary substantially in the
fourth quarter compared
to previous quarters, to
extrapolate the conclusions on investments by
sectors based on data for
the first three quarters
was not possible. As an
illustration, a change in
this factor on an annual
basis for the first three
quarters amounted
to BAM 11 million.
Balance of payments
data in 2013 indicate
an increase of BAM 142
million.

17

Net foreign exchange


reserves of the CBBH
represent gross foreign
exchange reserves (cash
and deposits in foreign
currencies, foreign
securities and monetary
gold) reduced by liabilities of the Central Bank
to abroad.

18

95%

3.0
2009
Net Foreign Exchange Reserves
Source: Table 24

2010

2011

Monetary Liabilities

2012

2013
Coverage of Monetary Liabilities with Net Foreign
Exchange Reserves in % (rhs)

36

Central Bank of Bosnia and Herzegovina

2.2 Reserves Accounts with the CBBH


Compared to 2012, the base for calculation
of the reserve requirement increased by
BAM 749.6 million (5.1%), out of which the
increase in local currency base refers to BAM
610.3 million (81.4% increase in the base
for calculation of reserve requirement). This
increase in the liabilities of commercial banks
included in the base for calculation of reserve

With the decline in domestic demand for


long-term receivables in previous years and
the consequent pronounced deleveraging of
daughter banks towards the mother banks, the
local banks have increasingly relied on domestic
sources of financing (Sub-section 1.2.3). This,
however, does not mean that the classic savings
have increased significantly in periods of weak
economic activity, particularly bearing in
mind that the residents deposits in BAM are

Graph 2.4: Quarterly Changes in Bank Liabilities and Reserve Account with the CBBH
600
400

in BAM million

200
0
-200
-400
-600
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2009
Deposits in BAM

2010

Foreign Liabilities of Banking Sector

2011

2012

2013

Deposits in Foreign Currency

Reserve Account

Source: Tables 06, 07 and 09

requirement is very important, especially


if viewed in the context of a significant
reduction in the base for 2012 or stagnation
in 2011 (Table 17).19 Resident deposits in
BAM have been the most significant factor
in the growth of the base for calculation of
reserve requirement in 2013, while liabilities
to non-residents have decreased (Graph 2.4).

19
Newly borrowed
funds (deposits and
loans that commercial
banks withdraw
from abroad) and
government deposits for
development projects
have been excluded from
the calculation base for
the reserve requirement
since 1 November
2008 and 1 May 2009,
respectively.

Such significant increase in BAM deposits is


a consequence of the growth of foreign public
debt, but also deposit growth in domestic
sectors, primarily of the households. Graph
2.5 shows the changes in the BAM base for
calculation of reserve requirement and new
external public debt (Sub-section 1.2.2) and
suggests that a significant share of new debt
of the public sector is aimed at development
projects (implying a new foreign debt that
exceeds the changes in the BAM base for
calculation of reserve requirements).

largely caused by new borrowing of the general


government sector abroad. Changes in the level
of money supply may arise as a result of changes
in the level of loans granted by commercial banks
to their customers, especially if there is a present
trend of contracting new loans due to renewal
or rescheduling of the existing ones. As security
instrument, or for credit risk mitigation, some
of the banks require that the fixed or currently
unused portion of the approved amount is kept
as term-deposits with banks for the duration
of the loan contract, thereby creating more
deposits than the amount of new deposits
collected through the process of multiplication.
This practice is particularly pronounced in
the case of new loans to households and nonfinancial enterprises placed in BAM. Graph
2.6 shows the new BAM loans to these sectors
(revolving loans, overdrafts and credit cards are
not included) and the new BAM deposits for
these sectors (demand deposits not included) in
2013.

Annual Report 2013

37

Graph 2.5: Changes in BAM Base for RR Calculation and New Foreign Public Debt
200
150

in BAM million

100
50
0
-50
-100
1

10

11

12

2013
Change in BAM Base for RR Calculation

New Foreign Public Debt

Source: Table 17 and Ministry of Finance and Treasury of BH

Graph 2.6: New Loans and New Deposits of Residents in BAM


400
350

in BAM million

300
250
200
150
100
50
0
1

10

11

12

2013
New BAM Loans to Non-government Sector

New BAM Deposits of Non-government Sector

Source: CBBH

Such policy of creating deposits is one of the


reasons for the differences between the level
of reserve money of the Central Bank and
the total deposits money. The decreasing
trend in monetary multiplier since mid2012 (Graph 2.7) implies that changes in the
money supply are less and less the results of
changes in the monetary liabilities, which
is common for periods when banks hold
significant balances at their accounts with
central banks. On the other hand, the uniform

movement of the multipliers, especially since


mid-2012, suggests that the multiplication of
money is mainly due to the increase in cash
and sight deposits. Significant differences
in trends among multipliers in 2013 was
recorded in the third quarter, which implies
that the increase of BAM base for calculating
reserve requirements (Graph 2.4) is due to
the increase in term-deposits and savings
deposits in BAM.

38

Central Bank of Bosnia and Herzegovina

Graph 2.7: Money Multiplication


1.2

2.9

1.15

2.8

1.1

2.7

1.05

2.6

1.0

2.5

0.95

2.4

0.9

2.3

0.85

2.2
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2009

2010

2011

2012

Money Multiplier M1

2013
Money Multiplier M2 (rhs)

Source: Table 06

Although the base for calculation of reserve


requirement has been increased on annual
basis, balances of the reserve account with
the CBBH are primarily determined by
the surplus funds held by the banks with
the CBBH over the reserve requirement
(Graph 2.8). The level of bank deposits with
the monetary authorities is determined by
multiple factors. One of them are also the
limits of banking supervisors (the entity
banking agencies) in terms of liquidity,
maturity structure, and foreign exchange risks
that are far stricter than the regulations on
reserve requirements. From the standpoint of
meeting the regulations on liquidity, it is quite

irrelevant to banks whether the excess cash is


held in their own vaults or at the accounts
with the CBBH. The reason for choosing
the latter option, even under the conditions
of low remuneration rates for balances at
the accounts of reserve requirements, are
probably high costs of securing cash in their
vaults, as well as, the possibility to use an
existing platform for interbank money market
if the funds are deposited in accounts with the
CBBH. In any case, the fact is that banks have
substantial liquidity resources as a result of
reducing the duration period up to maturity
of the banks financial liabilities compared to
earlier periods.

Graph 2.8: Balances in Reserve Accounts with the CBBH


4.0
3.5

in BAM billion

3.0
2.5
2.0
1.5
1.0
0.5
0.0
1 4 7 10 13 16 19 22 25 28 31 34 1 4 7 10 13 16 19 22 25 28 31 34
1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12
2012
Required Reserve
Source: Table 17

2013
Funds Exceeding Required Reserve

Annual Report 2013

39

2.3 Foreign Exchange Reserves


Management
The process and results of foreign exchange
reserve management by the CBBH, since the
outbreak of the global financial crisis to the
period covered by this Annual Report, were
largely determined with developments in the
financial markets where foreign exchange
reserves are invested in accordance with the
Law on the CBBH. This influence is evident in
the amount of the weighted average interest
rate (WAIR), calculated as the quotient of
interest income on invested foreign reserves
and the average balance of foreign exchange
reserves in the relevant year), systematised in
the following Table overview:

Given that the funds of foreign currency


reserves are invested mainly in securities and
deposits denominated in EUR, the trends of
money market interest rates have the largest
impact on the CBBH interest revenues
(which is a relevant indicator of interest
rates trends on EUR deposits) and the yields
on the securities of the euro area member
states (whereby, for the current structure of
the securities portfolio of the CBBH foreign
exchange reserves, the best indicator is the
movement of the yield rate on one-year or
two-year government bonds with the AAA
rating, denominated in EUR), where the
CBBH invests over 95% of foreign exchange
reserves.

Table 2.1: Average Weighted Interest Rate on Foreign Currency Reserves and Performed Income of the
CBBH
Average
Balance
Interest
of Foreign
Income,
Currency
BAM
Reserves,
million
BAM million
(01)

(02)

AWIR (%)

Net-monetary
Forex Income
(NMFI), BAM
million

CBBH
Total
Income,
BAM
million

CBBH
Financial
Results,
BAM
million

Share of
Interst
Income in
NMFI

(3)=(2)/(1)

(4)

(5)

(6)

(7)=(2)/(4)

2008

6,569.8

274.6

4.2%

280.8

291.3

199.4

97.8%

2009

6,072.9

101.0

1.7%

136.3

150.2

95.8

74.1%

2010

6,112.9

38.3

0.6%

62.2

77.1

33.2

61.6%

2011

6,114.2

56.8

0.9%

86.5

95.8

45.9

65.7%

2012

6,094.1

32.1

0.5%

56.5

70.3

34.1

56.9%

2013

6,572.7

31.3

0.5%

53.8

63.2

30.1

58.3%

Period
2008-2013

6,256.1

534.2

1.4%

676.0

747.8

438.5

79.0%

Source: CBBH
Note:
NMFCR are net monetary foreign currency revenues and
they represent the influence of the effects of foreign exchange
reserve management by the CBBH on the CBBH income
statement. They are calculated as the difference between total
foreign currency monetary revenues and foreign currency

monetary expenses, and they include the interest foreign


exchange revenues, proceeds from the sale of foreign currency
assets and other net foreign currency monetary revenues
(of which the most important are the net effect of exchange
rate differences on monetary gold and foreign currency and
expenses for the commission to non-residents).

40

Central Bank of Bosnia and Herzegovina

Graph 2.9: Trends of the Weighted Average Interest Rate on the CBBH Foreign Currency
Reserves and the Market Interest Rates in the Financial Market of Euro Area (annual averages)
5,0%

4,5%

4,5%

4,0%

4,0%

3,5%

3,5%

3,0%

3,0%

2,5%

2,5%

2,0%

2,0%

1,5%

1,5%

1,0%

1,0%

0,5%

0,5%

0,0%

0,0%

-0,5%

2008.

AWIR

2009.

2010.

ECB-MROR

2011.

2012.

2013.

Euribor 3m

2008.

2009.

2010.

2011.

2012.

EAll1y

AWIR
EAAA1y

2013.

EAll2y
EAAA2y

Source: CBBH
Note:

ECB MROR (ECB main refinancing operations rate) is the reference rate of the ECB.
EUR All 1y is the yield on one-year bonds in EUR for all rating levels.
EUR All 2y is the yield on two-year bonds in EUR for all rating levels.
EUR AAA 1y is the yield on one-year bonds in EUR for AAA rating.
EUR AAA 2y is the yield on two-year bonds in EUR for AAA rating.

20
As Euribor, other
interest rates at euro
area money market had
the drastic decline (such
as EONIA, overnight
interest rate), while
FIXBIS rate has been 0%
since mid-2011.

Noteworthy, the
market yields on
10-year bonds (which
are taken as the best
indicator of market
trends for bonds)
were denominated in
major world currencies
currently at levels
close to the historical
minimum.
21

The above data indicate that the weighted


average interest rate on foreign currency
reserves of the CBBH in 2008 amounted
to 4.2%, while in 2013, it dropped to below
0.5% (that is, WAIR in 2008 was nine times
higher than in 2013). This decline is largely
determined by the decline in interest rates
and yields, and frequent fluctuations in rates
in the short term, which was the main feature
of the market in the euro area over the past six
years (Table 2.2 and Graph 2.9). For example,
the three-month Euribor rate20 (Euribor 3m)
in 2008 was 21 times higher than in 2013, that
is, it dropped from 4.64% (as was its average
in 2008) to 0.22% (average in 2013).
Market yields on government securities of
member states of euro area have also had
frequent periods of turbulence, yet with
significantly declining trend.

Although usually the movement of yields


on ten-year government bonds is used as
a benchmark to measure developments in
the bond market,21 given the structure and
characteristics of the foreign exchange reserves
portfolio of the CBBH, the most suitable
benchmarks for comparison of WAIR with
movements in market yields on government
bonds in EUR are the movements of market
yields on bonds with one year until maturity
(in the period from 2008 to 2010) and bonds
with the remaining maturity period of two
years (in the period from 2011 to 2013).
Thus, for example, the yield on one-year
bonds in EUR of AAA rating (EUR AAA 1y)
in 2008 was 64 times higher than in 2013, and
the yield on two-year bonds in EUR of AAA
rating (EUR AAA 2y) in 2008 was 20 times
higher than in 2013.

Annual Report 2013

41

Table 2.2: CBBH AWIR and Market Interest Rates in the Period of 2008-2013
Average Value of Market Interest Rates
AWIR

ECB-MROR

Euribor 3m

EAll1y

EAll2y

EAAA1y

EAAA2y

2008

4.2%

3.9%

4.6%

3.6%

3.7%

3.6%

3.6%

2009

1.7%

1.2%

1.2%

1.0%

1.7%

0.9%

1.5%

2010

0.6%

1.0%

0.8%

0.9%

1.4%

0.6%

0.9%

2011

0.9%

1.3%

1.4%

2.0%

2.4%

0.9%

1.2%

2012

0.5%

0.9%

0.6%

1.3%

1.6%

0.1%

0.2%

2013

0.5%

0.5%

0.2%

0.6%

0.9%

0.1%

0.2%

Period
2008-2013

1.4%

1.5%

1.5%

1.6%

2.0%

1.0%

1.3%

Ratio
2008/2013

8.7

7.2

21.1

6.0

4.2

63.6

20.4

Source: CBBH
See note with Graph 2.9

During the observed and analysed period,


the CBBH has continuously been adapting to
changed circumstances in the international
financial markets. Because the interest rates
on short-term deposits have become very
low, more funds in foreign exchange reserves
have been redirected into securities, more
specifically to those with longer maturity
periods and/or in securities that have lower
credit ratings. In this way, the structure of
foreign exchange reserves has been changed
in terms of higher risk exposure (primarily
credit risks through investments in lowerrated instruments, and market or interest
rate risk by investing in instruments of
longer remaining maturity) so as to achieve a
satisfactory level of interest revenues.
The process of restructuring of foreign
exchange reserves is still ongoing, taking into
account the liquidity, safety and profitability
of the CBBH, in addition to applying a more
active approach to managing the foreign
exchange reserves portfolio, with the aim
to compensate for the low level of interest
revenues. Considering that available forecasts
and expectations of changes in interest rate
and yields, as well as the price of gold and the
dollar exchange rate, all suggest the recovery
in the euro zone to be slow and uneven; it
is expected that the current structure of the
foreign exchange reserves portfolio in the

coming years will not be able to generate


significantly higher levels of annual foreign
currency interest revenues, and therefore no
significantly higher level of the CBBH total
revenues.
In accordance with the Law on the CBBH and
appropriate internal regulations, the CBBH
manages foreign currency reserves based
primarily on the principles of liquidity and
investment security. This implies that, while
maintaining high liquidity of foreign exchange
reserves and acceptable risk exposure, the
CBBH seeks to achieve favourable returns
on invested foreign reserves while ensuring
a high level of security. Decisions on the
management and investment of foreign
exchange reserves are made at three levels
within the CBBH organisation: (1) strategic
- the Governing Board, (2) tactical - the
Investment Committee, and (3) operational organisational forms of the CBBH in charge
of risk management, banking and monitoring
and analysis. The Governing Board approves
the CBBH Guidelines on Foreign Exchange
Reserves Management, which determine
the type and level of risk that the CBBH is
ready to take over, as well as the discretionary
scope for tactical and operational level. The
Investment Committee directs the foreign
exchange reserves management within the
Guidelines and adopts the Operational Rules

42

Central Bank of Bosnia and Herzegovina

for the Investment. Organisational forms of the


CBBH in charge of foreign reserves investment,
risk management, monitoring and analysis,
operate in accordance with the Guidelines and
Operational Rules, including the adoption of
operational decisions on investments.
In the process of managing foreign exchange
reserves during 2013, available information
relevant to money and capital markets in the
euro area and the world has been considered
on a daily basis, in addition to the available
forecasts that could affect the investment of
foreign exchange reserves in the current year,
but in the future alike. Further, the CBBH
continually analyses the possibilities and
modalities of the investment policy and foreign
exchange reserve management, and initiates
appropriate changes to investment policy in
order to adapt to market conditions in the
euro zone. Also, the CBBH has continuously
analysed information related to the movement
of yields on the financial markets in which the
foreign exchange reserves have been invested,
as well as the basic macroeconomic indicators
and projections for the relevant country, the
euro zone and the global economy, including
information related to the ratings of foreign
banks in which the CBBH has term-deposits
and funds in the current account and
information on countries that are issuers of
securities represented in the foreign exchange
reserves portfolio of the CBBH in order to
minimise the credit risk.
The foreign exchange reserves portfolio is
primarily exposed to financial risks, namely:
credit, market (interest rate and foreign
exchange risk) and liquidity risk. The CBBH
limits exposure to credit risk by investing
primarily in bonds of selected countries of the
euro zone, and the placement of deposits in
selected central banks in the euro zone, selected
foreign commercial banks and the BIS, provided
that they meet the eligibility standards of the
contracting party. Credit risk management is
carried out by defining eligibility requirements
and restrictions of investments concentration
in each country and each commercial
foreign bank. Eligibility requirements and
the concentration restrictions for the foreign
exchange reserves investing are reviewed and
updated as needed, whilst taking into account

the official announcements of rating agencies


and credit risk indicators obtained by using
internal models for credit risk.
Interest rate risk, or the risk of reducing
the value of the foreign exchange reserves
portfolio due to changes in interest rates is
controlled by benchmark portfolios, as well as
regulating the duration of the total portfolio of
foreign exchange reserves. Foreign currency
risk is a possibility for the CBBH to generate
loss due to changes in the value of foreign
currency assets and liabilities, as a result of
any adverse movement in exchange rates of
foreign currencies, in which the reserves are
denominated, in relation to the local currency.
The CBBH minimizes this risk by holding
foreign exchange reserves mainly in euro,
since the exchange rate of the convertible mark
is pegged to euro. Instruments providing daily
liquidity include deposits and the current
accounts funds with foreign commercial banks
that meet the criteria of credit risk, with the BIS
and with central banks, as well as all the due
funds from all the instruments. The liquidity
risk is controlled by investing foreign exchange
reserves in deposits with short maturities.
Foreign exchange reserves of the CBBH have
been invested during 2013 in accordance with
the Law on the CBBH, the CBBH Guidelines on
the Foreign Exchange Reserves Management
in accordance with the Operational Rules for
the Investment, as well as the instructions of
the Investment Committee.
In 2013, the average daily balance of foreign
exchange reserves amounted to approximately
BAM 6.57 billion, which is by BAM 478 million
more than the average daily balance of foreign
exchange reserves in 2012, when it amounted
to BAM 6.09 billion.
The amount of net foreign assets, which is
the positive difference between the foreign
currency reserves after covering monetary
liabilities (BAM currency in circulation and the
deposits of commercial banks) and liabilities
to non-residents, has fluctuated in 2013 due to
pronounced changes in levels, of both foreign
exchange reserves and monetary liabilities. At
the end of the year, net foreign assets amounted
to BAM 408.11 million, which is by BAM 112.3

Annual Report 2013

43

million or 21.60% less than the value on the


end of 2012. The decrease in net foreign assets
in the amount of BAM 112.3 million is a result
of growth of the monetary liabilities exceeding
the growth of foreign exchange reserves.
Foreign exchange reserves at the end of 2013
amounted to BAM 7.068.34 million and have
increased by 8.6%, or 559.8 million compared
to the end of 2012, while monetary liabilities in
the same period grew by 11.22% or BAM 672.1
million, with an accented increase in deposits
of commercial banks.

of the liquid portfolio have increased. Further,


in order to adjust to such market conditions, a
part of the funds from one component of the
liquid portfolio (deposits with non-resident
banks) was diverted to another component of
the liquid portfolio (treasury bills). The CBBH
has thus restructured its foreign exchange
reserves portfolio, and the share of liquid
portfolio increased from last years 40.43% to
44.18%, while the share of investment portfolio
has decreased from last years 59.57% to 53.50%
of total foreign exchange reserves.

The total foreign exchange reserves at the end


of 2013 amounted to eq. BAM 7,068.3 million,
which is an increase of 8.60% compared to the
end of December 2012, when these amounted
to eq. BAM 6,508.6 million. The structure
of foreign exchange reserves at the end of
2013 comprised investment portfolio with a
share of 53.50%, liquid portfolio with a share
of 44.18% and monetary gold with a share of
2.32%. Liquid portfolio consists of deposits
with central banks, the BIS and foreign banks
(31.37% of total foreign exchange reserves),
cash in the CBBH vault (1.3% of total foreign
exchange reserves), the SDR with the IMF
(0.04% of total foreign exchange reserves)
and treasury bills (11.47% of total foreign
exchange reserves). The balance of deposits
with non-resident banks, as the largest item in
liquid portfolio at the end of 2013 amounted to
BAM 2.22 billion. The average duration of the
portfolio of deposits in 2013 amounted to 21.57
days (36.62 days in 2012), and the fixed-term
foreign currency deposits were made at periods
of one week to six months.

Following the trends of the market, compared


to the end of 2012, funds deposited with nonresident banks have decreased by BAM 116.9
million (5%), while the funds invested in
securities (treasury bills, long-term securities
available for sale and the securities held to
maturity) were increased by BAM 714.9 million
(18.43%).

The investment portfolio consists of long-term


securities: securities available for sale (52.0%
of total foreign exchange reserves) and held
to maturity securities (1.5% of total foreign
exchange reserves). As a safeguard against
credit risk, investments are made in securities
of European countries with a high rating, with
a limit on maximum share of debt instruments
for each country. Modified duration of the
securities portfolio at the end of 2013 was 2.59
years.

Relatively low rate of return earned on


investment in convertible foreign currencies
(Graph 2.11) are the result of low rates of return
on securities and short-term deposits in euro,
which have dominated the financial markets in
2013, and are caused by poor macroeconomic
performance of the euro area (Sub-section 1.1).
More specifically, slow economic growth or even
recession, coupled with high unemployment
rates, are all tendencies that have continued
in the euro area during 2013 as well. Foreign
exchange market, money market and capital
market during 2013, as in the previous three
years, were largely under the pressure of global
events (Sub-section 1.1).

In order to reduce the effect of extremely low


and avoid possible negative interest rates on
deposits, investments in treasury bills as a part

In accordance with the Law on the CBBH, a


part of the profit realised in 2012 in the amount
of BAM 20.5 million was transferred in April
2013 to the account of the BH Ministry of
Finance and Treasury, which is responsible for
the budget of the institutions of Bosnia and
Herzegovina.
The combined effect of all the investments of the
CBBH foreign currency funds in convertible
foreign currency and monetary gold on the
income statement for the period 1 January
to 31 December 2013, amounts to BAM 53.8
million, or 0.83% expressed as the effective rate
of return.22

Effective rate of return


is calculated by dividing
the total investment
effects of foreign
exchange reserves funds
(in gold and convertible
foreign currencies) by
the average balance
of foreign exchange
reserves in the
relevant period. When
calculating the overall
investment effects
of foreign exchange
reserves funds, all of the
net income from interest
on securities and
deposits has been taken
into account, as well
as net realised capital
gains/losses due to the
sale of securities from
the portfolio of foreign
exchange reserves of the
CBBH.

22

44

Central Bank of Bosnia and Herzegovina

Graph 2.10: Average Annual Rates of Yield on CBBH Foreign Exchange Reserves
2.5%

2.0%

1.5%

1.0%

0.5%

0.0%
2009

2010

2011

2012

2013

Source: CBBH

Graph 2.11: Structure of Investing Foreign Exchange Reserves of the CBBH


8.0
7.0

in BAM billion

6.0
5.0
4.0
3.0
2.0
1.0
0.0
2010
Liquid Portfolio

2011

2012

Investment Portfolio

2013
Monetary Gold

Source: CBBH

2.4 Cash Management


The amount of money in circulation in
terms of the currency board arrangement is
conditioned by the amount of funds in the
reserve account with the CBBH and it consists
of cash in bank vaults and cash out of banks,
that is, the amount of money circulating in
the economy. While cash in vaults of banks in
recent years has generally had uniform trend
with a pronounced seasonal character, its
constant growth has been recorded in 2013.

Cash outside banks, in the hands of citizens,


has seen a constant upward trend since 2010,
which continued in 2013 (Graph 2.12).
An accentuated demand for cash in the local
currency can have a savings or transaction
character. Given the tendency of citizens to
save in foreign currency, and the absence of
major shocks that could threaten the stability
of the financial sector in 2013, this demand
could first be explained by transaction
requirements, namely due to unofficial cash

Annual Report 2013

flows that are typical of countries with a large


share of the grey economy. A significant
share of unregistered activities and enhanced
periodic demand for cash could be the reason
behind the decision of banks to keep larger
amounts of cash in their own vaults.
Supplying commercial banks with cash is
done through the vaults of the CBBH Main
Units and Branches, based in Sarajevo,
Banja Luka, Mostar and Brko, with
strict adherence to the currency board
arrangement. Communications related to
supply of commercial banks with cash is done
exclusively through the platform of electronic
interbank money market. On 31 December
2013, the total value of cash in circulation
amounted to BAM 2.91 billion. The
circulation included 46,949,861 banknotes
worth BAM 2.78 billion and 246,149,457

coins, worth BAM 126.9 million (Table 2.1).


Compared to the end of 2012, the overall
value of cash in circulation has increased by
BAM 162.4 million (5.91%). The amount of
banknotes, compared to the same period of
the last year, increased by 2,273,077 pieces in
total value of BAM 155.8 million. In 2013, the
amount of banknotes in denominations of
100, 20 and 10 BAM has increased, while the
denominations of 200 and 50 BAM reduced.
The amount of coins in circulation compared
to the same period last year increased by
11,337,117 pieces, worth BAM 6.5 million.
The greatest increase has been recorded in the
amounts of coins of denomination of 5 F (by
3.2 million pieces, that is, 8.23%) and 10 F (by
2.2 million pieces or 3.18%).

2.6

500

2.5

450

2.4

400

2.3

350

2.2

300

2.1

250

2.0

200

1.9

in BAM million

in BAM billion

Graph 2.12: Cash outside the Monetary Authorities

150
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2009
Cash outside Banks
Source: Table 06

2010

45

2011

2012

2013
Cash in Banks (rhs)

46

Central Bank of Bosnia and Herzegovina

Table 2.3: Denomination Structure of Money in Circulation as of 31 December, 2013


Date of Putting
in Circulation

Pieces

Share in the Value of


Total Circulation

Value

Banknotes Denomination
200

15.05.2002

2,436,561

487,312,200

16.7%

100

27.07.1998

12,732,714

1,273,271,400

43.8%

50

27.07.1998

15,862,875

793,143,750

27.3%

20

27.07.1998

7,003,336

140,066,720

4.8%

10

22.06.1998

8,914,375

89,143,750

3.1%

46,949,861

2,782,937,820

95.6%

Banknotes Total
Coins
5

04.01.2006

7,441,447

37,207,235

1.3%

28.06.2000

9,964,625

19,929,250

0.7%

28.06.2000

36,808,777

36,808,777

1.3%

0.5

09.12.1998

26,693,522

13,346,761

0.5%

0.2

09.12.1998

51,793,579

10,358,716

0.4%

0.1

09.12.1998

71,943,083

7,194,308

0.2%

0.05

04.01.2006

41,504,424

2,075,221

0.1%

246,149,457

126,920,268

4.4%

Banknotes Total
TOTAL

2,909,858,088

100.0%

Source: CBBH

Table 2.4: Survey on Cash Circulation, Destroyed Banknotes and Counterfeits in the Period of
1998 2013
Year

Circualtion in BAM

Destroyed Banknotes
in BAM

Counterfeits in BAM
Value

1998

114,598,095

40

1999

167,458.839

363,364

142,485

2000

695,887,615

8,405,863

230,204

2001

1,805,962,219

193,834,014

112,185

2002

1,870,782,940

92,531,914

41,665

2003

1,721,858,246

201,504,034

66,831

2004

1,817,427,255

118,743,350

44,153

2005

1,907,182,940

82,025,000

66,285

2006

2,154,234,164

93,830,269

51,202

2007

2,439,709,153

279,167,134

44,166

2008

2,552,431,902

867,449,706

49,831

2009

2,267,734,115

573,411,726

111,438

2010

2,497,501,445

261,884,788

72,701

2011

2,645,055,508

13,809,849

63,047

2012

2,747,511,841

477,374,530

33,604

2013

2,909,858,088

333,310,750

50,009

Source: CBBH

Annual Report 2013

The CBBH performs continuous withdrawal


of damaged banknotes that are destroyed
in accordance with applicable regulations.
Withdrawal of damaged and worn-out
banknotes and putting into circulation of new
banknotes series maintain the satisfactory
quality of money in circulation. In 2013,
8,910,504 pieces of damaged banknotes worth
BAM 333.3 million have been destroyed and
4,834 pieces of damaged coins worth BAM
2,717 (Table 2.4).
In 2013, 3,916 pieces of BAM counterfeited
banknotes and coins, with a total value of BAM
50,000, have been registered (Table 2.5). The
number of counterfeited banknotes in relation
to 2012 is 35.84% higher. The number of
registered counterfeited coins in 2013 is 1.48%
lower compared to 2012.
In 2013, coins of 2013 edition have been
received from the producer as follows: 20 F
denomination in the quantity of 2.8 million
pieces, 10 F in the amount of 2.8 million
pieces and 5 F in the amount of 3.4 million
pieces. All features on the coins of 2013 issue
have remained the same as in previous issues.
These coins have been put into circulation
successively as the legal tender in BH through
the CBBH Main Units and Branches.

47

2.5 Payment System Maintenance


The legal obligation of maintaining the
adequate payment and settlement systems
was met by the CBBH in 2013 as well, Central
Registry of Credits (CRC) and Single Registry
of Transaction Accounts (SRTA) were
maintained and the international clearing
of payments with foreign countries was also
performed.
Interbank payment system in BH recorded
a growth of the number of transactions, but
their total value was lower compared to 2012
(Table 2.6 and Table 18). Having in mind
that in 2013, a stronger economic growth
was recorded compared to the previous
year (Table 01), the decrease of the number
and value of interbank transactions (which
ultimately resulted in the decrease of the
number and value of transactions, which
were carried out through commercial banks)
was in accordance with the growth of the
quantity of money outside banks (Graph 2.12)
and the conclusion that it is very likely that a
considerable number of payment transactions
in the country was not registered.

Table 2.5: Recorded Counterfeited Banknotes and Coins in 2013


Banknotes
Denomination

Coins
2

Total

200

100

50

20

10

Pieces

96

420

618

178

300

72 2,225

3,916

Value

1,400

9,600

21,000

12,360

1,780

0 1,500

144 2,225

50,009

Source: CBBH

Table : 2 .6: Payments System Transactions through Commercial Banks in 2013


Inter-banking
Transactions

Intra-banking
Transactions

Total

Number, in million

35.8

58.2

94.0

Change in Relation to
2012

5.8%

-10.1%

-4.6%

Value, in BAM billion

76.60

84.98

161.59

Change in Relation to
2012

-6.0%

-5.5%

-5.8%

Source: CBBH

48

Central Bank of Bosnia and Herzegovina

Decrease of the value of interbank


transactions was caused by the decrease of the
value of transactions performed through the
settlement system in real time, RTGS (Table
19). As in earlier periods, most of transactions
in interbank payment system was performed
in a smaller number of banks; 55.2% of the
total value of transactions in the payment
system was performed through five banks.
Unlike the classical payment system, card
payments significantly increased compared to
the previous periods (Table 2.7). The increase
of turnover on POS terminals was particularly
prominent.
As in BH there is no possibility of using POS
terminals to withdraw cash, and assuming
that holders of cards issued by BH banks

mainly withdrew cash in foreign countries


by ATM terminals, Tables 2.8 and 2.9 suggest
that the significant growth of turnover on
POS terminals in 2013 was mainly due to
the growth of purchase of the goods and
services of residents in BH. Such trend would
certainly be positive from the view of more
efficient payment of goods and services if it
was not caused by the increase of turnover
based on debit cards which, mainly, include
the option of the permitted overdraft based
on current account. On the other hand, a
significant growth of withdrawals of cash
on ATM terminals by holders of cards
issued outside BH was recorded, which is a
positive contribution to the growth of foreign
exchange reserves, and can be caused by a
significant inflow of tourists in BH or higher
possibility of card payments of goods and
services in BH.

Table 2.7: Survey of Cards Transactions via ATM and POS Terminals
2011

2012

2013

POS, in BAM billion

1.71

1.70

2.27

Change Compared to the Previous Year

9.3%

-0.7%

33.3%

ATM, in BAM billion

4.32

4.63

4.92

10.7%

7.2%

6.3%

6.03

6.33

7.18

10.3%

4.9%

13.5%

2011

2012

2013

Cash Withdrawal at ATM and POS Terminals,


in BAM million

105.1

117.7

131.5

Buying of Goods and Services at POS


Terminals, in BAM mllion

181.2

216.9

312.1

Total, in BAM million

286.2

334.6

443.6

2011

2012

2013

Cash Withdrawal at ATM and POS Terminals,


in BAM million

635.2

751.3

1.054.6

Buying of Goods and Services at POS


Terminals, in BAM million

186.0

201.2

324.4

Total, in BAM million

821.2

952.5

1.379.0

Change Compared to the Previous Year


Total, in BAM billion
Change Compared to the Previous Year
Source: CBBH

Table 2.8: Realized Value Abroad of the Cards Issued by BH Banks

Source: CBBH

Table 2.9: Realized Value of Foreign Cards in BH Banks and Shops

Source: CBBH

Annual Report 2013

Although internet or electronic banking


recorded an upward trend compared to the
previous periods (23.11%), particularly in
case of physical persons, the value of the total
turnover was still so low (BAM 155 thousand
in 2013) that it is not considered a significant
kind of transaction in the payment system of
BH.
CBBH contributed to financial stability also
by maintaining CRC which is updated on
daily basis by data of 29 commercial banks,
18 microcredit organizations, nine leasing
companies and three more institutions.
During 2013, the CRC was accessed 2.75
million times (+2.19% compared to 2012).
The total number of access points to the
Registry is 1.529 and commercial banks
used the highest number of access points,
1.335. They are followed by microcredit
organizations with 155 access points, leasing
companies with 33 and other institutions
with 5 access points.
In the SRTA, in the end of 2013, the data on
279,511 transaction accounts were stored,
out of it 214,686 active and 64,825 blocked
accounts. SRTA was accessed from 1,550
access points which were used by: 29 banks,
10 microcredit organizations, seven leasing
organizations and 66 other state and other
institutions. Organizational units of the
CBBH in the previous year issued the total
of 8,960 statements from Single Registry of
Transaction Accounts, as it follows: Main
Unit Sarajevo: 6,999; Main Unit Mostar: 1,458
and Main Bank of Republika Srpska of the
Central Bank of BH: 503.
In 2013, the CBBH performed international
clearing of payments between BH and Serbian
banks. Through the system of clearing way of
settlement of international payments with
Serbia, the total of 7,929 orders were issued
(+16.28% compared to 2012), whose value
was EUR 122.6 million (+30.96% compared
to 2012). The share of one bank group in this
kind of transactions amounted to 80% of the
total value of orders in 2013.

49

2.6 The Fiscal Agent Role


According to the concluded contracts in 2013,
the CBBH continued to act as banking and
fiscal agent of the Entity Banking Agencies
and Registries of Securities. According to
the Contract concluded with the Deposit
Insurance Agency of BH, the process was
continued of keeping records on the portfolio
of securities of this institution, which,
according to the agreement of the Deposit
Insurance Agency with a foreign portfolio
manager, is managed by the portfolio manager.
According to the concluded Contract on
performing the tasks of banking and fiscal
agent between the CBBH and Indirect
Taxation Administration of BH (ITA), on the
basis of the Law on Payments in the Single
Account and Revenue Allocation, during
2013, the keeping of single account of ITA for
collection of revenues from indirect taxes was
continued. According to this arrangement,
commercial banks on daily basis transferred
to the account for recording, holding and
allocating revenues of ITA with the CBBH
all the collected revenues, and then, those
revenues, at the order of ITA were allocated
to several accounts by different purposes
according to legal regulations and orders
of ITA. On the basis of the Law on Excise
Duties, in 2013, the process was continued
of collecting the funds paid from the tolls
at the account of ITA with the CBBH, and
the allocation of these funds at the order of
ITA to the Entities and Brko District. The
mentioned transactions were also carried out
on daily basis.
The Ministry of Finance and Treasury of
Bosnia and Herzegovina, according to the
Law on Issuing Debt, Debt and Guarantees of
Bosnia and Herzegovina, is in charge, among
other, of concluding international agreements,
providing funds in the local currency for
servicing due liabilities and keeping records
on BH foreign debt. The CBBH is an agent
of the Ministry in accordance with the
mentioned Law, and also on the basis of the
mutual Agreement on Foreign Debt Servicing
with the Ministry. The CBBH competences
in respect of foreign debt servicing are: on
the basis of the paid coverage in the local
currency, to provide the needed amount
in foreign currency for the account of the

50

Central Bank of Bosnia and Herzegovina

Ministry, to perform payments/settlements


in international payment system at the order
of the Ministry, to keep all the accounts
necessary for servicing due liabilities and to
inform the Ministry about everything in a
timely manner. A new Agreement on Foreign
Debt Servicing, initiated also by the Law on
Amendments and Supplements of the Law on
Financing BH Institutions from April 2013
was signed in October 2013.

2.7 Compiling and Creating Statistical


Data
Statistical activities of the CBBH planned for
2013 were realized entirely and in a timely
manner, by which the CBBH continued to
contribute to the realization of the annual
plan of statistical activities in BH. Statistical
activities in the CBBH cover three wider
groups of economic statistics within which
separate statistical research and production
of a higher number of separate statistical
segments and tables are carried out; statistics
of monetary and financial sector; statistics of
balance of payments and government finance
statistics. The applied methodologies are to
the highest possible extent harmonized with
international methodologies and standards,
which makes possible direct international
comparability of data and publishing of
data in the publications of international
institutions (IMF, BIS, ECB). Compilation of
source data is based on the use of the available
administrative data and direct compilation
from reporting units, and adjustment of
the available official statistical data of other
statistical institutions in BH and in foreign
countries. The quality and availability of
administrative data in BH has not reached the
level as in the developed countries, which is a
restriction for statistical production.
The strengthening of cooperation was
continued within the domestic statistical
system in BH, but also at the international
level, through the participation in the
forums, working groups and seminars in
the organization of the UN, Eurostat, OECD
and BIS. With purpose of improving the
quality, consultations and controls of input
data are continuously performed with the
data sources, while users are provided with
explanations and new requirements are met.

With the regular statistical production,


during 2013, modernization and expanding
of statistical activities has continued, with
purpose of providing a better set of information
for the general public and for the CBBH
needs. After the period of preparations and
experimental production, in the beginning of
the year, interest rate statistics was published,
which is harmonized with the methodology
applied in the members of euro system.
This statistics includes 82 indicators on the
weighted average values of interest rates of
commercial banks. Out of the mentioned 82
indicators, 60 are related to the interest rates
for different types of loans of commercial
banks, and 20 are related to interest rates for
deposits with commercial banks. This project
was in the preparation stage supported
by technical assistance programme from
IPA 2008 funds for the CBBH and it was
implemented through the cooperation with
the ECB and the Austrian National Bank. The
CBBH contributed actively to the inclusion
of the domestic statistics into the GDDS
(General Data Distribution System), which is
performed under the organization of the IMF.
Inclusion in this system requires the necessary
transparency and quality of statistical data,
so the CBBH, in the beginning of the year,
together with BH Statistics Agency, worked
hard on fulfilment of the conditions for the
accessing of the GDDS, which was successfully
completed in April 2013. In this way, domestic
economic statistics became more available
and recognizable at the international level.
Beside the regular data dissemination
(through the web site and publications), the
CBBH continued to fulfil special statistical
requirements of the local institutions
(Directorate for Economic Planning, FIPA,
Directorate for European Integration,
Ministry of Finance and Treasury of BH)
and international institutions (IMF, World
Bank, UNCTAD, Eurostat, BIS, UN Statistical
Department).
During 2013, compilation and publishing
of the set of core indicators of financial
soundness
according
to
the
IMF
methodology was continued. Indicators have
been published on quarterly basis on the web
site of the CBBH since mid 2009, and since
September 2011 also on web site of the IMF.
In efforts to provide as more information on

Annual Report 2013

BH financial sector soundness as possible


and to achieve maximum comparability with
the data published by the same methodology
by the other countries in the region, in 2013,
the CBBH has expanded the set of financial
soundness indicators with three new
indicators, which have been published from
the fourth quarter of 2013.
Finally, significant efforts were made in the
upgrading of the information support for
statistical production, therefore modern
technological solutions based on Business
Intelligence and data storing were introduced.
In this way, raising the quality of statistical
processing and controls will be made
possible and processes will be accelerated and
reliability of safekeeping and dissemination of
data will be increased. The work on the new
web portal for statistical data was also started,
which will make possible much more flexible
and easier access to the existing statistical
data.

2.8 Monitoring Systemic Risks in the


Financial System
Although it was not explicitly stated in the
CBBH Law, the CBBH responsibility for
monitoring the stability of the financial
system arises from the articles of the Law
which are related to the role of the CBBH in
the processes related to the financial system
components. The CBBH is directly responsible
institution for maintaining the appropriate
payment and settlement systems, which are
a part of the financial infrastructure, and it
was also assigned a coordination role in bank
supervision. Within Article 4 of the CBBH
Law, which defines international cooperation,
it was stated that the CBBH can cooperate
with relevant international organizations
with purpose of the strengthening of financial
and economic stability of the country.
The CBBH performs a function of monitoring
systemic risks in the financial system which
means timely identification of vulnerabilities
in the financial system of the country. The
purpose of the CBBH activities in this area is
the understanding of cause and consequence
relations between the financial system and
macroeconomic surrounding, the warning of

51

financial institutions and other participants


in the market of the existing risks, and
the initiating dialogue on risks and taking
corrective measures which will reduce the
consequences of risk materialization. The
CBBH activities in the area of monitoring
the financial system stability include also a
specialized communication with relevant
domestic and international institutions
which provides the continuity of the
process of monitoring systemic risks and
communicating on risks for the financial
stability with the general public.
The tasks of coordination of the activities of
the agencies included regular meetings with
the representatives of the Banking Agencies
in accordance with the Memorandum
on Principles of Coordination of Bank
Supervision, continuous exchange of data and
information and coordination of operative
activities with purpose of continuation
and strengthening of cooperation and
insuring harmonization of issues in the
area of preventing money laundering and
terrorism financing. Related to this, the
CBBH participates also in the work in interinstitutional working group established by
the Council of Ministers of BH on the basis
of the Report and recommendation of the
Appointed Council of Europe Committee of
Experts on the Evaluation of the Anti-Money
Laundering Measures and the Financing
of Terrorism (Moneyval), with purpose of
establishing and coordinating measures of
BH institutions conducted in the area of
preventing money laundering and terrorism
financing.23 Beside the Entity Banking
Agencies, the information was continuously
exchanged also with the Deposit Insurance
Agency, which is included in the regular
coordination meetings, and appropriate
cooperation was also maintained with Banks
Association in BH and Association of Microfinancial Organizations in BH.
The CBBH informs the general public on
the risks for the financial stability through
a regular annual publication, the Financial
Stability Report, which has been published
on the CBBH web site since 2007. By
publishing the Financial Stability Report,
the CBBH wishes to point out to the
public the consequences of the previous
macroeconomic trends and the trends in

Moneyval regularly
estimates measures
conducted by the
institutions of the
countries members
of the Council of
Europe by making
periodic evaluation,
preparing reports on
evaluation and giving
recommendations on
improving measures.

23

52

Central Bank of Bosnia and Herzegovina

financial, primarily banking sector on the


risks and challenges which the financial
system will face in the periods ahead.
In 2013, the CBBH continued its activities
on performing macroeconomic stress tests .
Stress tests in the CBBH have been performed
quarterly and they are the basic tool for the
quantification of the effects of systemic risks
on the banking system. Detailed results of
stress tests are distributed to the Banking
Agencies, which also receive the Report
on the results of stress tests in which the
systemic risks and future trends are presented
in a descriptive way. The results of stress tests
through the appropriate form of the Report
on the results of stress tests are also submitted
to the Standing Committee for Financial
Stability (SCFS) which, beside the Governor
of the CBBH and Directors of Banking
Agencies, includes also the members of the
Fiscal Council and Director of the Deposit
Insurance Agency. The aggregated results
of stress tests on the basis of the end year
data are published in the Financial Stability
Report.
Among the other information and reports
which are in the function of monitoring the
financial system stability, we can stress the
information for SCFS and the set of internal
standardized or ad hoc information which are
primarily created for the needs of the CBBH,
but they can be also distributed to other
relevant institutions. The information for
SCFS are aimed at presenting to the member
institutions the situation and the existing risks
in BH banking system, and the influences
of systemic risks from the real, fiscal and
financial sectors, and the international
environment on the banking sector, which
ensures the exchange of opinions and more
comprehensive observation of relations in the
economy. Standardized or ad hoc information
are primarily created for the needs of the
CBBH, but they can be distributed to other
relevant institutions.
In 2013, the CBBH carried out activities for
the fulfilment of recommendations arising
from the IMF technical mission from May
2012, related to the improvement of the
function of monitoring financial stability.
Therefore, the CBBH, in cooperation with
the Banking Agencies, has defined the

final Methodology for defining the list of


systemically important banks in BH, and
in June 2013, the Memorandum on the
Adoption of the Methodology among these
three institutions was signed and the list of
systemically important banks for BH was
made. By the identification of systemically
important banks in the country, the possibility
was made to use different approaches in
the supervision of these institutions, and in
the creation of the comprehensive plan for
contingencies.

2.9 Cooperation with International


Institutions and Rating Agencies
After signing the Stabilization and
Association Agreement and entry into force
of Interim Agreement, in 2008, Interim
Committee for Stabilization and Association
was initiated as the highest body within the
Process of Stabilization and Association
and joint bodies of BH and European
Commission were set up, whose basic task is
monitoring the progress of BH in fulfilling the
obligations defined by Interim Agreement on
Stabilization and Association. During 2013,
the CBBH continued to contribute to the work
of coordination and expert structures set up
by the Interim Agreement. The competent
departments of the CBBH participated in
the work and preparation of documents and
reports for the Sub-Committee for Economic
and Financial Issues and Statistics.
The CBBH participated in the creation of the
BH attachment for Bosnia and Herzegovina
Progress Report. In evaluation and Progress
Report of the European Commission, the
CBBH monetary policy received a positive
assessment. The European Commission
confirms that the financial and monetary
stability was preserved through the
maintaining of the environment of low
inflation, stressing that the currency board
arrangement still has a high level of credibility.
Since the end of 2012, the CBBH started
to submit the relevant information, data
and explanations for the creation of the
publication of the European Central Bank
Financial Stability Report for Countries
Candidates and Potential Candidates for the

Annual Report 2013

EU Membership, by which BH was included


in the report for the first time. During
2013, cooperation was continued with the
ECB in the mentioned activities, and by the
same principle, the CBBH gave contribution
to the project of the World Bank on the
creation of the second and the third edition
of the World Bank report Perspectives of
the Financial Sector in the Western Balkans.
Publications of this kind will contribute to
better understanding of system risks in the
region and BH position compared to the
other countries.
Despite political delay in the implementation
of reforms and further progress of BH in the
European integration process, the CBBH,
by its own capacities and with the help of
technical cooperation projects, continued
the strengthening of institutional capacities
and conducting activities directed at coming
closer to and harmonizing with the standards
of the European System of Central Banks and
the euro system. Although in 2013, the CBBH
did not realize direct technical cooperation
with the ECB, systemic strengthening
of contacts was continued. Governor
participated in the work of the conference
of the ECB on international cooperation
of central banks as efficient instrument for
transfer of knowledge and preparation for
the EU, and the representative of the CBBH
participated in the meeting of the ESCB Task
Force on Central Bank Cooperation, which
operates within the ESCB Committee for
International Relations.
During 2013, the CBBH continued the
activities on the project of technical assistance
in the area of financial stability with the World
Bank, through FinSAC (Financial Sector
Advisory Centre) from Vienna, which started
in the end of 2012. The project is aimed at
strengthening analytical capacities of the
CBBH in the area of monitoring systemic
risk and supporting the work of Standing
Committee for Financial Stability.
In December 2013, the I stage of the
programme on Strengthening the Public
Institutions in Bosnia and Herzegovina
was successfully completed. The objective
of technical cooperation programme of the
CBBH and GIZ with the financial support
of the Federal Ministry for Economic

53

Cooperation and Development of FR


Germany is strengthening capacities of
the CBBH with purpose of improving the
processes of preparations for accessing the
European System of Central Banks and
harmonization with the standards applied in
the EU.
On the basis of the Memorandum between
the CBBH and GIZ, the Operative Plan was
successfully realized which includes the
activities leading to the improvement of the
CBBH operations through the integration of
the existing IT system and development of new
applications with purpose of IT Department
using the customer oriented approach, with
higher transparency and faster delivery of
services to business users. Improvement of
capacities was realized through the advisory
help and training of staff in four areas: risk
management, statistics, cash management
and IT.
Generally, the planned results were achieved,
i.e. much more was achieved than planned
initially. Institutional capacity of the CBBH,
including internal processes and structures
in the CBBH, has been strengthened. The
project insured continuous introduction of
the EU standards and continuation of some
activities started within the earlier projects
with the ECB.
In December 2013, the CBBH and Swiss State
Secretariat for Economic Affairs SECO
signed the Program of Bilateral Assistance
and Building of Central Bank Capacities.
The Programme is implemented by Graduate
Institute of International Studies GIIS,
Geneva. The Agreement will be in effect for
three years (2014-2016). The purpose of the
programme is to provide the CBBH with
the access to technical expertise and better
access to the best international practices,
particularly in the areas of development of
financial models and econometric analysis,
improvement of the quality of statistical data
and improvement of research and analytical
capacities.
During 2013, the CBBH participated actively
in technical assistance missions related to
management of public debt (foreign and
domestic), provided by the World Bank to the
Entity Ministries of Finance and the Ministry

54

Central Bank of Bosnia and Herzegovina

of Finance and Treasury of BH. The first


step of the mentioned technical assistance
was Debt Management Performance
Assessment (DeMPA) in the mentioned
Ministries of Finance and at their invitation.
So, during March, October and December
2013, three different missions from the
World Bank had a number of meetings with
the CBBH and other institutions in BH.
In 2013, in the organization of the CBBH,
a mission of international rating agency
Standard & Poors was held with the relevant
international and domestic institutions in
BH with purpose of assessment of sovereign
credit rating of BH. Political situation,
budget, foreign debt servicing, relations
with international financial institutions
and financial system, were the main issues
for discussion in the assessment of BH
credit rating. The Agency confirmed the
rating B/with Stable Outlook for Bosnia
and Herzegovina.

2.10 Internal Audit Process


Activities of the Office of Chief Audit
Executive (OCAE) in 2013, were aimed at
performing the duties defined by the Law
on the CBBH, realization of tasks and
activities defined by the Plan of Operations
of the CBBH for 2013 and Annual
Internal Audit Plan for 2013. Respecting
the basic objectives of internal audit,
OCAE continuously monitors, analyses
and reports to the Management of the
CBBH on the efficiency of implementing
risk management system, provides
assessment and opinion if the existing
internal control systems detect risks, if
the existing controls are efficient and if all
the segments of operations are covered by
adequate internal control system which
ensures active risk management.
The audit risk assessment is carried
out according to the Risk Assessment
Methodology in the CBBH, which represents
the framework for defining and identifying
risk areas, processes and activities and
establishment of adequate measures for
risk management. According to the criteria
and principles defined by Risk Assessment
Methodology, OCAE, during 2013, made

Strategic Internal Audit Plan for the period


2014 2017, and Annual Internal Audit Plan
for 2014, and both documents were adopted
by the CBBH Governing Board.
Proceeding according to the Internal Audit
Plan for 2013, the audit of some functions,
business processes and activities of the CBBH
was carried out, giving the priority to high level
risk processes, such as: management of foreign
exchange reserves, cash and reserve accounts
of commercial banks; financial operations
and procurements; functionality and safety
of information system; and functioning of
systems of physical and technical protection
in the CBBH buildings, including the overall
information security. Audit was carried out
in the way and according to the procedures
defined by the Manual on Internal Audit
Work, which is continuously harmonized
with legal and international professional
regulations for internal audit area. During
2013, active work was done on professional
training of OCAE staff which made possible
efficient implementation of the existing
regulations in the internal audit process.
Through the written reports on performed
audits, considered by the Audit Committee
and adopted by the Governing Board of the
CBBH, opinion is provided related to the
estimate on efficiency of implementing the
risk management system and functioning of
internal control system, with the proposal of
measures for their improvement.

2.11 Other
2.11.1 Implementation of Strategic
Objectives
With purpose of implementing strategic
objectives of the CBBH, during 2013, a
number of activities was undertaken for the
establishing of more efficient way of working
and automatization of business processes in
all the segments of functions of support and
administration of the CBBH. In order to
ensure a developed system of information
technology by the strengthening of the CBBH
capacities, with purpose of supporting the
improvement of all the business processes,
the Operative Plan of implementation
of strategic objectives of development of

Annual Report 2013

55

information technologies in the CBBH for


the next four years was defined and adopted.
A new approach of rationalization and
automatization of business processes brought
about significant savings which were realized
in 2013.

continuously maintained (the maintenance


objective). In practice, it means slower
growth of the number of employees with
efficient employment of the existing
resources.

In order to ensure efficient organization,


according to the CBBH Strategic Plan in
the period 2011- 2017, with motivated,
professionally qualified and competent staff
performing their tasks with the highest
degree of success, ensuring a high level of
reputation and promoting joint values of the
CBBH, during 2013, the organization of the
CBBH was changed, with some staff changes
(Section 4.1). By applying the adopted
strategy in human resources management
the strategy of efficiency with objective of
maintaining and continuous improvement,
human resources management policies are
aimed at making possible for the institution
to follow its strategic objectives as much
as possible with the existing staff which is

2.11.2 Human Resources Management


The highest body in the CBBH is Governing
Board, which is in charge of defining monetary
policy and control of its implementation,
organization and strategy of the CBBH
according to the authorities defined by the
Law. The Governing Board includes Governor,
who is a Chairman, and four Members (Table
2.10 below). The Management of the Central
Bank includes Governor and three Vice
Governors appointed by Governor with the
approval of the Governing Board. The task of
the Management is operative management of
the CBBH operations. Each Vice Governor is
directly responsible for the work of one sector
(organizational chart of the CBBH below).

Table 2.10 : Management Structure of the CBBH

CBBH Governing Board

Kemal Kozari, Ph.D., Chairman


Fikret auevi, Ph.D., Member
Milenko Krajinik, Ph.D., Member
eljko ain, Ph.D., Member
Vasilj arkovi, Ph.D., Member

CBBH Management

Kemal Kozari, Ph.D., Governor


Ernadina Bajrovi, M.A. , Vice Governor
Radomir Boi, Ph.D., Vice Governor
Ankica Kolobari,M.Sc., Vice Governor

Office of Chief Audit Executive

Dragan Kulina, Ph.D., Chief Audit Executive


(until 10.08.2013)
Edis Kovaevi, M.Sc., Chief Audit Executive
(from 01.10.2013)
Angela Medi, Deputy of Chief Audit Executive
Jasmina Novalija, Deputy of Chief Audit Executive
Krstinja Toovi, Deputy of Chief Audit Executive

Audit Committee

Mila Gadi, Ph.D., Member


Gordana Kovi, Member
Sead Kreso, Ph.D., Member

56

Central Bank of Bosnia and Herzegovina

ORGANIZATIONAL CHART OF THE CENTRAL BANK


OF BOSNIA AND HERZEGOVINA

GOVERNING BOARD

GOVERNOR

OFFICE OF
THE GOVERNOR

OFFICE OF THE CHIEF


AUDIT EXECUTIVE

OFFICE OF THE
CHIEF ECONOMIST

HEAD OFFICE OF THE CENTRAL BANK OF BOSNIA AND HERZEGOVINA

OFFICE OF THE VICE GOVERNORS

SECTOR FOR STATISTICS,


EXTERNAL DEBT
SERVICING, EUROPEAN
INTEGRATION
AND PAYMENT SYSTEMS

SECTOR FOR
MONETARY OPERATIONS,
CASH AND FOREIGN
CURRENCY
RESERVES MANAGEMENT

EUROPEAN
INTEGRATIONS
DEPARTMENT

BANKING
DEPARTMENT

PAYMENT SYSTEMS
DEPARTMENT

DEPARTMENT FOR
EXTERNAL
DEBT SERVICING
AND IFI
RELATIONS

STATISTICS AND
PUBLICATIONS
DEPARTMENT

SECTOR FOR
ADMINISTRATION
AND FINANCE

IT DEPARTMENT

CBBH - SARAJEVO
MAIN UNIT

FINANCIAL
STABILITY
DEPARTMENT

HUMAN RESOURCES
DEPARTMENT

CBBH - MOSTAR
MAIN UNIT

MONITORING AND
ANALYSES
DEPARTMENT

LEGAL AFFAIRS
DEPARTMENT

MAIN BANK OF
REPUBLIKA
SRPSKA OF
THE CBBH

CASH
MANAGEMENT
DEPARTMENT

ACCOUNTING
AND FINANCE
DEPARTMENT

BRANCH OF
THE CBBH IN PALE

RISK
MANAGEMENT
DEPARTMENT

SECURITY
DEPARTMENT

COMMON
AFFAIRS AND
PROCUREMENT
DEPARTMENT

CBBH BRKO BRANCH

Annual Report 2013

On 31 December 2013, 349 employees


were employed in the CBBH (Graph 2.13).
The number of employees in the years
immediately following the establishment
of the CBBH increased rather fast as the
number of functions taken over by the
CBBH also increased. In the period 2002
2010, the number of employees increased,
at the average, by 4% a year. Such moderate
growth made possible the development of
the basic functions of the CBBH through the
strategic selection of profile of staff necessary
for further improvement of efficiency of
operations. In the period 2011 - 2013, the
number of employees is almost unchanged,
which is partly a consequence of the policy of
rational use of the available resources.
Out of the total number of staff in the end of
2013, 70.8% had university education (with
a high number of staff with M.Sc., M.A and
Ph.D. degrees) and 22.3% had high school
education.

The average age of employees at the end of


2013 was 44. Graph 2.14 suggests that the
outflow of employees is rather low, and that
the employment policy, particularly in periods
after 2002, was in favour of young staff. The
number of employees with the age over 55
gradually increases, implying that the highest
number of the CBBH employees employed in
the years immediately after the establishment
of the CBBH stayed in the bank. On the
other hand, relatively unchanged share of the
number of employees with the age under 44
implies that the CBBH employment policy
was attracting young staff, who received
additional training in practice and were kept
in the CBBH. Decrease of the number of
employees with the age under 29 over the last
three years implies that the bank employed
less staff than in the years before the crisis
and that all the additional activities were
reallocated to the existing staff members.

Graph 2.13: The Number of Employees in the CBBH


400
350
300
250
200
150
100
50

Number of Employees

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

1998

1997

Source: CBBH

57

58

Central Bank of Bosnia and Herzegovina

Graph 2.14: Age Structure of Employees


100%
90%
80%
70%
60%
50%
40%
30%
20%
10%

Under 29

30 - 44

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

0%

45 - 54

Over 55

Source: CBBH

The CBBH is an employer which ensures


gender equality, which is reflected in
a significant number of women in the
management structure (Table 2.10) and the
total number of employees (Graph 2.15).

In 2013, the CBBH received 54 students for


internship, who met their obligations in this
way and also acquired knowledge and insight
into the work of this institution, which they
will be able to use in their further education.

Graph 2.15: Gender Structure of Employees


100%

80%

60%

40%

20%

Men
Source: CBBH

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

0%

Women

Annual Report 2013

FINANCIAL REPORTS

59

III

60

Central Bank of Bosnia and Herzegovina

Annual Report 2013

61

CENTRAL BANK OF BOSNIA AND HERZEGOVINA


Financial statements for the year ended 31 December 2013

Responsibility of the Management and Governing Board for the preparation and approval
of the annual financial statements

63

121

62

Central Bank of Bosnia and Herzegovina

Annual Report 2013

63

INCOME STATEMENT
for the year ended 31 December
In thousands of KM

Note

Interest income

18

31,334

32,147

Interest expenses

18

(1,060)

(993)

30,274

31,154

7,777

8,441

NET INTEREST INCOME


Fee and commission income

19

Fee and commission expenses

19

NET FEE AND COMMISSION INCOME

2013

2012

(708)

(389)

7,069

8,052

Net realized gains from sale of financial assets


available-for-sale

22,294

16,166

Net realized gains from sale of monetary gold

11,723

Net foreign exchange losses

20

(54)

(4,526)

Other income

21

1,745

1,819

61,328

64,388

OPERATING INCOME
Personnel expenses

22

(18,385)

(18,477)

Administrative and other operating expenses

23

(10,230)

(8,931)

Depreciation and amortisation

10

OPERATING EXPENSES

NET PROFIT FOR THE YEAR

(2,627)

(2,846)

(31,242)

(30,254)

30,086

34,134

The accompanying notes on pages 70 to 121 are an integral part of these financial statements.

64

Central Bank of Bosnia and Herzegovina

STATEMENT OF COMPREHENSIVE INCOME


for the year ended 31 December

In thousands of KM

Note

NET PROFIT FOR THE YEAR

2013

2012

30,086

34,134

(72,744)

7,202

(11,723)

(72,744)

(4,521)

Other comprehensive income


Items that may be reclassified subsequently to the income
statement
Monetary gold
Net changes in fair value of monetary gold

3,6.7

Realized fair value gains from monetary gold


reclassified to the income statement
Financial assets available-for-sale
Net changes in fair value of financial assets
available-for-sale
Realized fair value gains from financial assets
available-for-sale reclassified to the income
statement
Total other comprehensive (loss) / income
TOTAL COMPREHENSIVE (LOSS) / INCOME FOR
THE YEAR

(26,397)

35,147

(22,294)

(16,166)

(48,691)

18,981

(121,435)

14,460

(91,349)

48,594

The accompanying notes on pages 70 to 121 are an integral part of these financial statements.

Annual Report 2013

65

BALANCE SHEET
as at
In thousands of KM

Note

31 December
2013

31 December
2012

ASSETS
Foreign currency in cash

91,609

133,195

Deposits with foreign banks

2,217,598

2,334,514

2,728

4,525

Special Drawing Rights with the International


Monetary Fund
Financial assets available-for-sale

4,486,402

3,770,039

Monetary gold

164,144

158,979

Held-to-maturity investments

105,858

107,317

Other assets

8,571

10,920

Property, equipment and intangible assets

10

43,538

39,443

Other investments

11

27,813

27,813

7,148,261

6,586,745

TOTAL ASSETS

LIABILITIES, CAPITAL AND RESERVES


Currency in circulation

12

2,909,858

2,747,512

Deposits from banks

13

3,475,258

3,040,616

Deposits from the Government and other depositors

14

274,083

198,876

Provisions for liabilities and charges

15

991

869

Other liabilities

16

21,726

23,126

6,681,916

6,010,999

25,000

25,000

505,552

493,518

31,300

31,300

Fair value reserves monetary gold

(79,316)

(6,572)

Fair value reserves financial assets available-for-sale

(16,191)

32,500

466,345

575,746

7,148,261

6,586,745

Total liabilities

Subscribed capital
General reserves (Retained earnings)
Other reserves

Total capital and reserves

TOTAL LIABILITIES, CAPITAL AND RESERVES

17

The accompanying notes on pages 70 to 121 are an integral part of these financial statements.

66

Central Bank of Bosnia and Herzegovina

STATEMENT OF CHANGES IN EQUITY

Subscribed capital

General reserves
(Retained earnings)

Other
reserves

Fair value reserves


monetary gold

Fair value reserves


financial assets
available-for-sale

Total

for the year ended 31 December 2013

25,000

493,518

31,300

(6,572)

32,500

575,746

Profit for the year

30,086

30,086

Other comprehensive income

(72,744)

(48,691)

(121,435)

30,086

(72,744)

(48,691)

(91,349)

(18,052)

(18,052)

25,000

505,552

31,300

(79,316)

(16,191)

466,345

In thousands of KM

Balance as of 1 January 2013


Total comprehensive income
for the year

Distribution of profit
Distribution of profit to the state
budget (Note 24)

Balance as of
31 December 2013

The accompanying notes on pages 70 to 121 are an integral part of these financial statements.

Annual Report 2013

67

STATEMENT OF CHANGES IN EQUITY

Other
reserves

Fair value reserves


monetary gold

479,864

31,300

(2,051)

13,519

547,632

Profit for the year

34,134

34,134

Other comprehensive income

(4,521)

18,981

14,460

34,134

(4,521)

18,981

48,594

(20,480)

(20,480)

25,000

493,518

31,300

(6,572)

32,500

575,746

Balance as of 1 January 2012

Total

General reserves
(Retained earnings)

25,000

In thousands of KM

Fair value reserves


financial assets
available-for-sale

Subscribed capital

for the year ended 31 December 2012

Total comprehensive income for


the year

Distribution of profit
Distribution of profit to the state
budget (Note 24)

Balance as of 31 December 2012

The accompanying notes on pages 70 to 121 are an integral part of these financial statements.

68

Central Bank of Bosnia and Herzegovina

STATEMENT OF CASH FLOWS


for the year ended 31 December

Note

2013

2012

30,086

34,134

2,627

2,846

Net realized (gains) from sale of financial assets


available-for-sale

(22,294)

(16,166)

Net realized (gains) from sale of monetary gold

(11,723)

Net loss from foreign exchange differences on


monetary gold

865

Income from grants

(41)

(75)

Provisions for liabilities and charges

212

254

(Gain) / loss on disposal of property and equipment

(22)

10

(714)

(30,568)

(25,909)

(20,714)

(15,764)

39,117

275,460

2,271

(5,562)

Increase of currency in circulation

162,346

102,456

Increase / (decrease) in deposits

509,849

(30,584)

1,069

524

(90)

(111)

693,848

326,419

In thousands of KM
CASH FLOWS FROM OPERATING ACTIVITIES
Profit for the year
Adjustments for:
Depreciation and amortisation

Effects of change of accounting policy


Interest income from held-to-maturity investments
and financial assets available-for-sale recognized in
the income statement
Net cash flows from operating activities before
changes in operating assets and liabilities
Changes in operating assets and liabilities
Decrease in deposits with foreign banks
Decrease / (increase) in other assets

Increase in other liabilities


Pay-out of severance payments
Net cash from operating activities

Annual Report 2013

69

CASH FLOWS FROM INVESTING ACTIVITIES


Proceeds from sale of property and equipment
Purchases of property, equipment and intangible assets
Collected principal and interest from financial assets
available-for-sale
Purchases of financial assets available-for-sale, net

30

(6,730)

(5,808)

3,744,321

1,493,348

(4,457,716)

(3,449,942)

Proceeds from sale of monetary gold


Purchases of monetary gold
Collected principal and interest from held-to-maturity
investments

164,905

(77,195)

(166,264)

2,662

39,117

(106,862)

Purchases of held-to-maturity investments


Net cash used in investing activities

(794,628)

(2,031,507)

CASH FLOWS FROM FINANCING ACTIVITIES


Distribution of profit to the state budget

(20,480)

(27,559)

Net cash used in financing activities

(20,480)

(27,559)

Net (decrease) in cash and cash equivalents

(121,260)

(1,732,647)

Cash and cash equivalents at 1 January

2,433,329

4,165,976

2,312,069

2,433,329

Cash and cash equivalents at 31 December

28

The accompanying notes on pages 70 to 121 are an integral part of these financial statements.

70

Central Bank of Bosnia and Herzegovina

1.

GENERAL INFORMATION

The Central Bank of Bosnia and Herzegovina (the Bank) was established in accordance
with the Law on the Central Bank of Bosnia and Herzegovina, which was adopted by the
Parliamentary Assembly of Bosnia and Herzegovina (BiH) on 20 June 1997, according to the
General Framework Peace Agreement in Bosnia and Herzegovina.
The Central Bank of Bosnia and Herzegovina started its operations on 11 August 1997.
The main objectives and tasks of the Central Bank of Bosnia and Herzegovina are:
-

-
-
-
-
-
-
-
-

to define, adopt and control the implementation of monetary policy of BiH through
the issuance of local currency (Convertible Mark or KM) with full coverage in free,
convertible foreign exchange assets;
to keep and manage the official foreign exchange reserves of the Bank in a safe and
profitable manner;
to implement monetary policy in accordance with the Law on the Central Bank of
Bosnia and Herzegovina;
to establish and maintain adequate payment and settlement systems;
to coordinate the activities of the banking agencies, who are in charge of issuing
banking licences and supervising banks;
to accept deposits from the state and public institutions of BiH and deposits from
commercial banks;
to issue provisions and guidelines for the performance of the Banks operations, in
accordance with the Law on the Central Bank of BiH;
to take part in the operations of international organisations working on strengthening
the financial and economic stability of the country;
to represent BiH in international organisations regarding monetary policy issues.

The highest body of the Bank is the Governing Board, which is in charge of defining monetary
policy and the control of its implementation, and the organisation and the strategy of the Bank
in accordance with the Law on the Central Bank of Bosnia and Herzegovina.
The Management of the Bank consists of the Governor and Vice-Governors, appointed by the
Governor with the approval of the Governing Board. The Management operationally manages
the Banks activities.
According to the Law on the Central Bank of Bosnia and Herzegovina, the Governor, with the
approval of the Governing Board, appoints the Chief Internal Auditor and three Deputies.
The Bank operates through its Head Office, three main units located in Sarajevo, Mostar, and
Banja Luka, and two branches, one in Brko District and other in Pale, the latter of which
operates under the authorisation of the Main Bank of Republika Srpska of the Central Bank of
Bosnia and Herzegovina in Banja Luka.
During the course of 2012 and 2013 and up to the date of this report, the Governing Board,
Management, Main Internal Auditor and Audit Committee members were:

Annual Report 2013

Governing Board

71

Management

Kemal Kozari Ph.D.

Chairman

Kemal Kozari Ph.D.

Governor

Fikret auevi Ph.D.

Member

Radomir Boi Ph.D.

Vice-Governor

Milenko Krajinik Ph.D. Member

Ernadina Bajrovi M.Sc.

Vice-Governor
(from 1 January 2013)

eljko ain Ph.D.

Member

Ankica Kolobari M.Sc.

Vice-Governor (until 30 November


2012 and from 1 July 2013)

Vasilj arkovi Ph.D.

Member

Feriha Imamovi

Vice-Governor
(until 31 December 2012)

Office of the Main Internal Auditor

Audit Committee

Edis Kovaevi M.Sc.

Main Internal Auditor


(from 1 October 2013)

Mila Gadi Ph.D. Member

Dragan Kulina Ph.D.

Main Internal Auditor


(until 10 August 2013)

Gordana Kovi

Member

Jasmina Novalija

Deputy to Main Internal


Auditor

Sead Kreso Ph.D.

Member
(from 11 august 2012)

Angela Medi

Deputy to Main Internal


Auditor

Kasim Omievi

Member
(until 10 august 2012)

KrstinjaToovi

Deputy to Main Internal


Auditor

72

Central Bank of Bosnia and Herzegovina

2.

BASIS FOR PREPARATION

2.1.

Statement of compliance

The financial statements of the Bank have been prepared in accordance with International
Financial Reporting Standards (IFRS) as published by the International Accounting Standards
Board (IASB).
2.2 Basis of measurement
The financial statements have been prepared on the historical cost basis, except for the
revaluation of certain financial instruments and monetary gold, which are stated at fair value.
Historical cost is generally based on the fair value of the consideration given in exchange for
assets.
Fair value is the price that would be received to sell or paid to transfer a liability in an orderly
transaction between market participants at the measurement date, regardless of whether that
price is directly observable or estimated using another valuation technique. In estimating the
fair value of an asset or a liability, the Bank takes into account the characteristics of the asset or
liability which market participants would take into account when pricing the asset or liability
at the measurement date.
Fair value for measurement and/or disclosure purposes in these financial statements is
determined on such basis, except for measurements that have some similarities to fair value
but are not fair value, such as net realisable value in IAS 2 or value in use in IAS 36.
In addition, for financial reporting purposes, fair value measurements are categorised into
Level 1, 2 or 3 based on the degree to which the inputs to the fair value measurements are
observable and the significance of the inputs to the fair value measurement in its entirety,
which are described as follows:
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or
liabilities that the Bank can access at the measurement date;
Level 2 inputs are inputs, other than quoted prices included in Level 1, that are
observable for the asset or liability, either directly or indirectly; and
Level 3 inputs are unobservable inputs for the asset or liability.

2.3.

Use of estimates and judgements

The preparation of financial statements in conformity with IFRS requires Management to


make estimates and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial statements and their
reported amounts of revenues and expenses during the reporting period. Actual results could
differ from those estimates.

Annual Report 2013

73

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions
to accounting estimates are recognized in the period in which the estimate is revised if the
revision affects only that period or in the period of revision and future periods if the revision
affects both current and future periods.
Information on amounts where significant uncertainty exists in their estimate and critical
judgments in applying accounting policies that have the most impact on the amounts disclosed
in these financial statements are disclosed in Note 3.17.
2.4.

Functional and presentation currency

The Banks financial statements are stated in the official national currency of Bosnia and
Herzegovina which is the Convertible Mark (KM). All financial information has been rounded
to the nearest thousand (unless otherwise indicated).
The official exchange rate of KM to the Euro (EUR) has been defined by the Law on the Central
Bank of Bosnia and Herzegovina as KM 1.95583 = EUR 1. As required by the Law, the Bank
is obliged to purchase and sell KM for EUR on demand, without any restrictions, within the
territory of Bosnia and Herzegovina, at the defined exchange rate.
The Law on the Central Bank of Bosnia and Herzegovina defines the operational rules for a
currency board to be used for issuing KM, according to which KM is issued only with the
purchase of convertible foreign exchange currency with full coverage in net foreign assets.
2.5.

Standards, interpretations and amendments to published standards that are


effective in the current period

The following standards, amendments to the existing standards and interpretations issued by
the International Accounting Standard Board are effective for the current period:
IFRS 10 Consolidated Financial Statements (effective for annual periods beginning on or
after 1 January 2013),
IFRS 11 Joint Arrangements (effective for annual periods beginning on or after 1 January
2013),
IFRS 12: Disclosures of Interests in Other Entities (effective for annual periods beginning
on or after 1 January 2013),
IFRS 13 Fair Value Measurement (effective for annual periods beginning on or after 1
January 2013),
IAS 27 (revised in 2011): Separate Financial Statements (effective for annual periods
beginning on or after 1 January 2013),
IAS 28 (revised in 2011): Investments in Associates and Joint Ventures (effective for
annual periods beginning on or after 1 January 2013),
Amendments to IFRS 1 First-time Adoption of IFRS Government Loans (effective for
annual periods beginning on or after 1 January 2013),
Amendments to IFRS 7: Financial Instruments: Disclosures Offsetting Financial Assets
and Financial Liabilities (effective for annual periods beginning on or after 1 January 2013),
Amendments to IFRS 10: Consolidated Financial Statements, IFRS 11: Joint
Arrangements and IFRS 12: Disclosures of Interests in Other Entities Transition
Guidance (effective for annual periods beginning on or after 1 January 2013),
Amendments to IAS: 1 Presentation of financial statements Presentation of Items of
Other Comprehensive Income (effective for annual periods beginning on or after 1 July
2012),

74

Central Bank of Bosnia and Herzegovina

Amendments to IAS 19: Employee Benefits Improvements to the Accounting for Postemployment Benefits (effective for annual periods beginning on or after 1 January 2013),
Amendments to various standards Improvements to IFRSs (cycle 2009-2011) resulting
from the annual improvement project of IFRS (IFRS 1, IAS 1, IAS 16, IAS 32, IAS 34)
primarily with a view to removing inconsistencies and clarifying wording (amendments
are to be applied for annual periods beginning on or after 1 January 2013),
IFRIC 20: Stripping Costs in the Production Phase of a Surface Mine (effective for annual
periods beginning on or after 1 January 2013).
The adoption of these standards, amendments to the existing standards and interpretations has
not led to any changes in the Banks accounting policies.
2.6.

Standards and Interpretations in issue not yet adopted

At the date of authorization of these financial statements the following standards, amendments
to existing standards and interpretations were in issue, but not yet effective:
IFRS 9: Financial Instruments and subsequent amendments (effective date was not
yet determined),
Amendments to IFRS 10: Consolidated Financial Statements, IFRS 12: Disclosures
of Interests in Other Entities and IAS 27: Separate Financial Statements Investment
Entities (effective for annual periods beginning on or after 1 January 2014),
Amendments to IAS 19: Employee Benefits - Defined Benefit Plans: Employee
Contributions (effective for annual periods beginning on or after 1 July 2014),
Amendments to IAS 32: Financial instruments: presentation Offsetting Financial
Assets and Financial Liabilities (effective for annual periods beginning on or after 1
January 2014),
Amendments to IAS 36: Impairment of assets - Recoverable Amount Disclosures
for Non-Financial Assets (effective for annual periods beginning on or after 1 January
2014),
Amendments to IAS 39: Financial Instruments: Recognition and Measurement
Novation of Derivatives and Continuation of Hedge Accounting (effective for annual
periods beginning on or after 1 January 2014),
Amendments to various standards Improvements to IFRSs (cycle 2010-2012)
resulting from the annual improvement project of IFRS (IFRS 2, IFRS 3, IFRS 8, IFRS
13, IAS 16, IAS 24 and IAS 38) primarily with a view to removing inconsistencies and
clarifying wording (amendments are to be applied for annual periods beginning on or
after 1 July 2014),
Amendments to various standards Improvements to IFRSs (cycle 2011-2013)
resulting from the annual improvement project of IFRS (IFRS 1, IFRS 3, IFRS 13 and
IAS 40) primarily with a view to removing inconsistencies and clarifying wording
(amendments are to be applied for annual periods beginning on or after 1 July 2014),
IFRIC 21: Levies (effective for annual periods beginning on or after 1 January 2014).
The Bank has elected not to adopt these standards, amendments and interpretations in advance
of their effective dates. The Bank anticipates that the adoption of these standards, amendments
and interpretations will have no material impact on the financial statements of the Bank in the
period of initial application.

Annual Report 2013

3.

75

SIGNIFICANT ACCOUNTING POLICIES

The accounting policies set out below have been applied in the preparation and presentation of
these annual financial statements.
The Banks accounting policies applying to the reporting date as at 31 December 2013 and
onwards differ from the accounting policies applied in the preparation and presentation of the
last annual financial statements in the part of recognition of foreign exchange differences from
conversion of prices of gold from USD to Convertible Mark (see Note 3.6.).
3.1

Interest income and expenses

Interest income and expenses are recognized in the income statement using the effective interest
method. The effective interest rate is the rate that exactly discounts the estimated future cash
payments and receipts through the expected life of the financial asset or liability (or, where
appropriate, a shorter period) to the net carrying amount of the financial asset or liability.
When calculating the effective interest rate, the Bank estimates future cash flows considering all
contractual terms of the financial instrument, but not future credit losses.
The calculation of the effective interest rate includes all transaction costs and fees and points
paid or received that are an integral part of the effective interest rate. Transaction costs include
incremental costs that are directly attributable to the acquisition or issue of a financial asset or
liability.
Interest income and expenses presented in the income statement include interest on financial
assets and financial liabilities measured at amortized cost calculated on an effective interest basis.
3.2.

Fee and commission income and expenses

Fee and commission income and expenses that are integral part to the effective interest rate on a
financial asset or liability are included in the measurement of the effective interest rate.
Other fee and commission income and expenses mainly comprise fees earned and spent on
domestic and foreign payment transactions for financial instruments issued and received by the
Bank, respectively and are recognized in the income statement upon performance of the relevant
service.
3.3

Foreign currency transactions

Transactions in foreign currencies are translated into the functional currency at the exchange rate
prevailing on the settlement date of the transaction. Monetary assets and liabilities denominated
in foreign currencies at the reporting date are retranslated to the functional currency at the
exchange rate applicable at that date. Non-monetary assets and liabilities that are measured
based on historical cost in a foreign currency are translated using the exchange rate at the date of
the transaction and are not retranslated at the reporting date.
Foreign exchange differences arising on retranslation of transactions and the assets and liabilities
denominated in foreign currencies are recognized in the income statement.

76

3.4.

Central Bank of Bosnia and Herzegovina

Dividend income

Dividend income from equity securities is recognized in the income statement when the Banks
right to receive income is established.
3.5.

Financial instruments

Financial assets and financial liabilities are recognized when the Bank becomes a party to the
contractual provisions of the financial instruments.
Financial assets and financial liabilities are initially measured at fair value. Transaction costs
that are directly attributable to the acquisition or issue of financial assets and financial liabilities
are added to or deducted from the fair value of the financial assets or financial liabilities, as
appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of
financial assets or financial liabilities at fair value through profit or loss are recognized directly
in profit or loss.
The Bank classifies its financial instruments in the following categories: held-to-maturity
investments, loans and receivables, financial assets available-for-sale and other financial
liabilities.
Method of effective interest rate
The effective interest method is a method of calculating the amortized cost of a financial asset
or a financial liability (or group of financial assets or financial liabilities) and of allocating
interest income or interest expense over the relevant period. The effective interest rate is the
rate that exactly discounts estimated future cash payments or receipts (including all fees on
points paid or received that form an integral part of the effective interest rate, transaction costs
and other premiums or discounts) through the expected life of the financial instruments, or,
where appropriate, a shorter period to the net carrying amount of the financial asset or financial
liability.
3.5.1. Financial assets
Financial assets are recognized and derecognized on the settlement date on which the purchase
or sale of an instrument is delivered to or by the Bank, and are initially measured at fair value,
plus transaction costs, except for those financial assets classified as at fair value through profit
or loss, which are initially measured at fair value.
The classification depends on the nature and purpose of the financial assets and is determined
at the time of initial recognition.
Loans and receivables
Receivables (including deposits with foreign banks) that have fixed or determinable payments
that are not quoted in an active market are classified as loans and receivables.
Loans and receivables are initially recognized at fair value plus transaction costs.

Annual Report 2013

77

After initial recognition, loans and receivables are measured at amortised cost using the
effective interest rate method, less any impairment. Interest income is recognized by applying
the effective interest rate, except for short-term receivables when the recognition of interest
would be immaterial.
Held-to-maturity investments
Government debt securities with fixed or determinable payments and fixed maturity dates that
the Bank has the positive intent and ability to hold to maturity are classified as held-to-maturity
investments. Held-to-maturity investments are recorded at amortized cost using the effective
interest method less any impairment, with revenue recognized on an effective yield basis.
Financial assets available-for-sale (AFS)
Debt and equity securities held by the Bank are classified as being AFS and are stated at fair
value. Fair value is determined in the manner described in the Note 28. Gains and losses arising
from changes in fair value of debt and equity securities are recognized directly in equity in the
fair value reserve account with the exception of impairment losses, interest calculated using the
effective interest rate method and foreign exchange gains and losses on financial assets, which
are recognized directly in profit or loss. Where the investment is disposed of or is determined to
be impaired, the cumulative gain or loss previously recognized in the fair value reserve account
in equity is included in profit or loss for the period.
Dividends on AFS equity instruments are recognized in profit or loss when the Banks right to
receive payments is established.
The fair value of AFS financial assets denominated in a foreign currency is determined in that
foreign currency and translated at the middle exchange rate at the reporting period date. The
change in fair value attributable to translation differences that result from a change in amortized
cost of the asset is recognized in profit or loss and other changes are recognized in equity.
Impairment of financial assets
Financial assets are assessed for indicators of impairment at each reporting date. Financial
assets are impaired where there is objective evidence that, as a result of one or more events that
occurred after the initial recognition of the financial asset, the estimated future cash flows of
the investment have been impacted.
Objective evidence of impairment could include:
significant financial difficulty of the counterparty; or
default or delinquency in interest or principal payments; or
it becoming probable that the borrower will enter bankruptcy or financial reorganisation.
Individually significant financial assets are tested for impairment on an individual basis. The
remaining financial assets are assessed collectively. Those individually significant assets which
are not identified as impaired are subsequently included in the basis for collective impairment
assessment. For the purposes of a collective evaluation of impairment, financial assets are
grouped on the basis of similar credit risk characteristics.

78

Central Bank of Bosnia and Herzegovina

For financial assets carried at amortized cost, the amount of the impairment is the difference
between the assets carrying amount and the present value of estimated future cash flows,
discounted at the financial assets original effective interest rate.
The carrying amount of the financial asset is reduced through the use of an allowance account.
When a receivable is considered uncollectible, it is written off against the allowance account.
Subsequent recoveries of amounts previously written off are credited against the allowance
account. Changes in the carrying amount of the allowance account are recognized in profit or
loss.
With the exception of AFS equity instruments, if, in a subsequent period, the amount of the
impairment loss decreases and the decrease can be related objectively to an event occurring
after the impairment was recognized, the previously recognized impairment loss is reversed
through profit or loss to the extent that the carrying amount of the investment at the date the
impairment is reversed does not exceed what the amortized cost would have been had the
impairment not been recognized.
In respect of AFS equity securities, any increase in fair value subsequent to an impairment loss
is recognized directly in equity.
Derecognition of financial assets
The Bank derecognizes a financial asset only when the contractual rights to the cash flows from
the asset expire; or it transfers the financial asset and substantially all the risks and rewards of
ownership of the asset to another entity.
3.5.2. Financial liabilities
Financial liabilities are classified as other financial liabilities.
Other financial liabilities
Other financial liabilities, including currency in circulation, deposits from the local commercial
banks and deposits from the Government and other depositors, are initially measured at fair
value, plus transaction costs.
Other financial liabilities are subsequently measured at amortized cost using the effective
interest method, with interest expense recognized on an effective yield basis.
Derecognition of financial liabilities
The Bank derecognizes financial liabilities when, and only when, the Banks obligations are
discharged, cancelled or they expire.
3.6.

Monetary gold

On 31 March 2009 the Bank started to hold monetary gold as part of its foreign reserves. Gold is
initially recognized at cost, being the fair value of the consideration given including acquisition
charges associated with the investment. After initial recognition, the gold is re-measured at
fair value. Gains and losses arising from changes in fair value, referring to price changes and

Annual Report 2013

79

foreign exchange differences from conversion from USD to Convertible Mark are recognized
directly in the fair value reserve in equity and reported as other comprehensive income, until
the asset is sold, when they are recognized as realized gains or losses in the income statement.
The fair value of monetary gold is expressed in American dollars (USD), converted at the
middle exchange rate as published by the Bank at the reporting date, and is measured at the last
bid price for one ounce of gold (Oz) at the reporting date quoted on Reuters.
In 2013, the Bank has changed policy regarding the recognition of foreign exchange gains
and losses from conversion of prices of gold from USD to Convertible Mark in order to be
recognized as a part of fair value adjustments recognized directly in the fair value reserve
in equity. As a result, profit for the year ended 31 December 2013 is increased by KM 7,319
thousand (out of which KM 6,605 thousand is from 2013, and KM 714 thousand from 2012).
If the new accounting policy is applied retroactively, comparatives for 2012 (fair value reserve
for gold and foreign exchange gains) should be restated in the amount of KM 714 thousand.
However, as this amount was considered as immaterial and correction of error was considered
as impracticable in accordance to the International Accounting Standard 8: Accounting
Policies, Changes in Accounting Estimates and Errors, (paragraphs 50 - 52), the Bank has not
restated comparatives for 2012.

3.7.

Cash and cash equivalents

For the purpose of reporting cash flows, cash and cash equivalents comprise the following
balance sheet categories: giro accounts, foreign currency in cash, foreign currency demand
deposits, and deposits with remaining maturity up to three months and Special Drawing Rights
in the International Monetary Fund.
3.8.

Property, equipment and intangible assets

Properties, equipment and intangible assets consist of assets obtained from the Banks own
funds and cash and non-cash grants.
Properties, equipment and intangible assets are stated at cost, less accumulated depreciation and
any recognized accumulated impairment losses. The purchase cost includes the purchase price
and all costs directly related to bringing the asset into operating condition for its intended use.
Maintenance and repairs, replacements and improvements of minor importance are expensed
as incurred. Significant improvements and replacement of assets are capitalized.
Property, equipment and intangible assets are periodically reviewed for impairment. Where
the carrying amount of an asset is greater than its estimated recoverable amount, it is written
down immediately to its recoverable amount.
Assets in course of construction are reported at their cost of construction including costs
charged by third parties. Upon completion, all accumulated costs of the asset are transferred
to the relevant property and equipment category and subsequently subject to the applicable
depreciation rates.

80

Central Bank of Bosnia and Herzegovina

Depreciation is provided on all assets except assets in the course of construction on a straightline basis at prescribed rate designed to write off the cost of the assets over their estimated
useful lives. The estimated depreciation rates during 2012 and 2013 were as follows:
Software
Other intangible assets
Buildings
Equipment
Furniture
Vehicles

20.0%
20.0%
1.3% do 4.0%
11.0% do 20.0%
10.0% do 12.5%
15.5%

Gains and losses on disposal of property and equipment are recognized in the income statement.
3.9.

Impairment of non-financial assets

The carrying amounts of the Banks non-financial assets are reviewed at each reporting date
to determine whether there is any indication of impairment. If any such indication exists,
the assets recoverable amount is estimated. An impairment loss is recognized whenever
the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount.
Impairment losses are recognized in the income statement.
The recoverable amount of other assets is the greater of their value in use and fair value less
cost to sell. In assessing value in use, the estimated future cash flows are discounted to their
present value using a pre-tax discount rate that reflects current market assessments of the time
value of money and the risks specific to the asset. For an asset that does not generate largely
independent cash inflows, the recoverable amount is determined for the cash-generating unit
to which the asset belongs.
An impairment loss is reversed if there has been a change in the estimates used to determine
the recoverable amount. An impairment loss is reversed only to the extent that the assets
carrying amount does not exceed the carrying amount that would have been determined, net
of depreciation or amortisation, as if no impairment loss had been recognized.
3.10.

Provisions for liabilities and charges

Provisions are recognized when the Bank has a present legal or constructive obligation as a
result of past events for which it is probable that an outflow of resources embodying economic
benefits will be required to settle the obligation and a reliable estimate of the amount of the
obligation can be made. Provisions are determined by discounting the expected future cash
flows at a rate that reflects current market assessments of the time value of money and the risks
specific to the liability.
Provisions for liabilities and charges are maintained at the level that the Banks management
considers sufficient for absorption of incurred losses. The management determines the sufficiency
of provisions on the basis of insight into specific items, current economic circumstances, risk
characteristics of certain transaction categories, as well as other relevant factors.

Annual Report 2013

81

Provisions are released only for such expenditure in respect of which provisions are recognized
at inception. If the outflow of economic benefits to settle the obligations is no longer probable,
the provision is reversed.

3.11. Grants
Grants related to assets, including non-cash grants, are initially recognized as deferred income
at fair value and are then recognized as income from grants on a systematic basis over the
useful life of the assets. Grants that compensate the Bank for expenses incurred are recognized
in income statement as income from grants on a systematic basis in the same periods in which
the expenses are recognized.
3.12. Taxes
According to Article 69 of the Law on the Central Bank of Bosnia and Herzegovina, the Bank
is not subject to any taxes and duties on its assets, property and income, and on its operations
and transactions. Payroll taxes and other taxes and duties on salaries are not covered by this
exemption.
3.13.

Currency in circulation

The Bank administers the issue and withdrawal of domestic bank notes and coins. The
corresponding liability from the issued currency in circulation is recorded in the balance sheet.
When currency is withdrawn from circulation, it is recognized as a liability as part of currency
in circulation, until the formal date of withdrawal. Any outstanding amount not withdrawn,
after the formal due date, is recognized as income.
Costs related to the production and design of banknotes and coins are initially recognized as a
deferred cost and subsequently amortized through other operating expenses over a period of
three years.
3.14.

Managed funds for and on behalf of third parties

The Bank maintains certain accounts in foreign currencies related to agreements concluded
between the governments of Bosnia and Herzegovina and its constituent entities and foreign
governments and financial organisations, as well as foreign currency accounts of state
institutions and agencies, and of commercial banks, for which the Bank acts as an agent.
3.15.

Employee benefits

Short-term employee benefits


In accordance with local regulations, on behalf of its employees, the Bank pays personal
income tax and contributions for pension, disability, health and unemployment insurance, on
and from salaries, which are calculated as per the set legal rates during the course of the year

82

Central Bank of Bosnia and Herzegovina

on the gross salary. The Bank pays those tax and contributions in the favour of the institutions
of the Federation of Bosnia and Herzegovina (on federal and cantonal levels), Republika Srpska
and Brko District.
In addition, meal allowances, transport allowances and vacation bonuses are paid in accordance
with the local legislation. These expenses are recognized in the income statement in the period
in which the expense is incurred.
Long-term employee benefits
According to local legal requirements, employees of the Bank are entitled to receive a one-time
benefit on retirement, provided legal conditions are met, such as the age or years of service,
which in accordance with the Banks internal Acts is based on six regular monthly salaries paid
to the respective employee in the last six months.
Such payments are treated as long-term employee benefits which are calculated annually by
independent actuaries using the projected unit credit method. The discount rate used in the
calculation of the liability is based on interest rates of domestic corporate bonds and government
bonds which exist on the market.

3.16. Financial arrangements of Bosnia and Herzegovina with the International


Monetary Fund
According to the financial arrangements made at the end of 2002 between Bosnia and
Herzegovina and the International Monetary Fund (IMF), the balance sheet of the Bank
includes the following items related to Bosnia and Herzegovinas membership of the IMF:
holdings of Special Drawing Rights (SDRs), accrued interest on such SDR holdings and the
IMF No. 1 account and IMF No. 2 account.
Other assets and liabilities related to the IMF, belonging to or being the responsibility of Bosnia
and Herzegovina, are recorded in a special Trust Fund within off-balance-sheet records (see
also Note 29).
3.17.

Critical accounting judgements and key source of estimation uncertainty

In the application of the Banks accounting policies, which are described in Note 3, the
Management is required to make judgments, estimates and assumptions about the carrying
amounts of assets and liabilities that are not readily apparent from other sources. The estimates
and associated assumptions are based on historical experience and other factors that are
considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to
accounting estimates are recognized in the period in which the estimate is revised if the revision
affects only that period or in the period of the revision and future periods if the revision affects
both current and future periods.

Annual Report 2013

83

Key assumptions and estimates relating to material balance sheet items are presented below.
Fair value of assets
The Banks policy is to disclose fair value information on those financial assets and financial
liabilities for which public market information is readily available or such value may be calculated
by applying some alternative valuation techniques, and whose fair value is materially different
from their recorded amounts. According to the Banks management, amounts presented in
the financial statements reflect the most reliable and useful estimate of fair value for financial
reporting purposes, in accordance with IFRS.
Depreciation and amortisation charge and rates applied
The calculation of depreciation and amortisation, as well as depreciation and amortisation
rates are based on the assessed economic useful life of property, equipment and intangible
assets. Once a year, the Bank assesses economic useful life based on current assumptions.

84

Central Bank of Bosnia and Herzegovina

4.

FOREIGN CURRENCY IN CASH

Foreign currency in cash relates to:

In thousands of KM

31 December
2013

31 December
2012

Cash in vaults per currency:


-

EUR

91,538

133,117

CHF

35

36

USD

18

21

GPB

18

21

91,609

133,195

TOTAL

5.

DEPOSITS WITH FOREIGN BANKS

Term and demand deposits with foreign banks, analysed by type of currency, are as follows:

In thousands of KM

31 December
2013

31 December
2012

Term deposits:
-

EUR

2,056,166

1,069,372

2,056,166

1,069,372

Demand deposits:
-

EUR

160,599

1,262,073

USD

826

2,876

Other currencies

193

161,432

1,265,142

2,217,598

2,334,514

TOTAL

Annual Report 2013

85

Term deposits with foreign banks, analysed by remaining maturity, are as follows:

In thousands of KM

Up to 1 month

31 December
2013

31 December
2012

1,633,903

618,711

From 1 to 2 months

342,902

372,420

From 2 to 3 months

79,361

39,124

From 3 to 4 months

39,117

2,056,166

1,069,372

TOTAL

During 2013 the interest rates on demand deposits ranged from 0.02% p.a. to 0.09% p.a. (2012:
from 0.00% p.a. to 0.28% p.a.) and on term deposits from 0.01% p.a. to 0.21% p.a. (2012: from
0.01% p.a. to 0.27% p.a.). Deposits with foreign banks include accrued interest in the amount
of KM 190 thousand as at 31 December 2013 (2012: KM 21 thousand).
The average effective yield rate on deposits amounted to 0.05% (2012: 0.21%).
Deposits with foreign banks analysed by the type of the bank invested in, are as follows:
In thousands of KM

Central banks
Commercial banks
TOTAL

31 December
2013

31 December
2012

1,563,716

1,738,775

653,882

595,739

2,217,598

2,334,514

86

Central Bank of Bosnia and Herzegovina

Deposits with foreign banks can be analysed on a geographical basis as follows:

In thousands of KM

31 December
2013

31 December
2012

Luxembourg
Term deposits
Demand deposits

1,391,116

531,490

4,244

195,610

1,395,360

727,100

France

Term deposits
Demand deposits

312,961

156,467

1,955

195,583

314,916

352,050

Switzerland

Term deposits
Demand deposits

273,855

10,326

2,851

284,181
Germany
Term deposits
Demand deposits

78,234

215,142

144,907

871,098

223,141

1,086,240

Netherlands

Term deposits

166,273

Demand deposits

166,273

2,056,166

1,069,372

161,432

1,265,142

2,217,598

2,334,514

Total Term deposits


Total Demand deposits
TOTAL

2,851

Annual Report 2013

6.

87

FINANCIAL ASSETS AVAILABLE-FOR-SALE

Financial assets available-for-sale are quality instruments with a high degree of marketability
and liquidity, with a credit rating from AAA to BBB+ (Fitch). The portfolio includes short-term
and long-term debt securities with a fixed interest rate, which are issued by the governments of
other foreign countries. Financial assets available-for-sale are denominated in EUR.
The structure of the financial assets available-for-sale is as follows:

In thousands of KM

31 December
2013

31 December
2012

Debt securities
Accrued interest

4,440,784
45,618

3,723,390
46,649

TOTAL

4,486,402

3,770,039

The average effective yield rate on financial assets available-for-sale amounted to 0.69% (2012:
0.89%).
Financial assets available-for-sale can be analysed on a geographical basis as follows:

31 December 2013
KM000
Italy

31 December 2012
%

KM000

1,292,208

28.80

558,785

14.82

France

984,864

21.95

1,354,866

35.94

Belgium

930,586

20.74

371,176

9.85

Netherlands

603,143

13.44

606,650

16.09

Austria

263,947

5.88

389,287

10.33

Germany

260,198

5.80

272,573

7.23

Finland

151,456

3.39

206,576

5.48

10,126

0.26

4,486,402

100.00

3,770,039

100.00

Luxembourg
TOTAL

88

Central Bank of Bosnia and Herzegovina

Movements in fair value of financial assets available-for-sale can be analysed as follows:


In thousands of KM

2013

2012

Opening balance as of 1 January

3,770,039

1,752,940

Purchases during the year

6,688,429

4,569,059

(2,230,713)

(1,119,117)

Sales during the year


Interest income recognized during the year (Note 18)
Collected principal and interest

29,365

25,358

(3,744,321)

(1,493,348)

(26,397)

35,147

4,486,402

3,770,039

Fair value adjustment


Closing balance as of 31 December

Net realized gains from the sale of financial assets available-for-sale in 2013 amounted to KM
22,294 thousand (2012: KM 16,166 thousand).

7.

MONETARY GOLD

The Bank holds monetary gold in a bank in Switzerland with a credit rating of AAA (Fitch),
which is physically held in a vault at the Bank of England. The value of the monetary gold as of
31 December 2013 amounts to KM 164,144 thousand, representing 96,000,000 ounces of gold
at KM 1,710 per ounce (2012: KM 158,979 thousand representing 64,000,000 ounces of gold at
KM 2,484 per ounce).
Movements in fair value of monetary gold can be analysed as follows:
In thousands of KM
Opening balance as of 1 January
Purchases during the year
Sales during the year
Fair value adjustments through other comprehensive income
- Changes in prices of gold
- Foreign exchange losses from conversion USD / KM
Foreign exchange losses from conversion USD / KM
Closing balance as of 31 December

2013

2012

158,979

151,283

77,195

166,264

(164,905)

(72,030)

7,202

(65,425)

7,202

(6,605)

(865)

164,144

158,979

Net realized gains from the sale of monetary gold in 2012 amounted to KM 11,723 thousand.

Annual Report 2013

8.

89

HELD-TO-MATURITY INVESTMENTS

All held-to-maturity investments are with credit rating of AAA (Fitch) and are denominated
in EUR.

The structure of the held-to-maturity investments is presented as follows:

In thousands of KM

31 December
2013

Debt securities
Accrued interest
TOTAL

31 December
2012

104,519

106,025

1,339

1,292

105,858

107,317

The average effective yield rate on held-to-maturity investments amounted to 1.13% (2012:
1.11%).
Held-to-maturity investments can be analysed on a geographical basis as follows:

31 December 2013

31 December 2012

KM000

KM000

Austria

61,017

57.64

61,292

57.11

Netherlands

44,841

42.36

46,025

42.89

105,858

100.00

107,317

TOTAL

100.00

Movements in held-to-maturity investments can be analysed as follows:


In thousands of KM
Opening balance as of 1 January
Purchases during the year
Interest income recognized during the year (Note 18)
Collected principal and interest
Closing balance as of 31 December

2013

2012

107,317

39,021

106,862

1,203

551

(2,662)

(39,117)

105,858

107,317

90

9.

Central Bank of Bosnia and Herzegovina

OTHER ASSETS

The structure of other assets is presented in the following table:


In thousands of KM

31 December 2013

31 December 2012

Prepaid expenses

4,535

7,420

Advances

1,040

39

Loans to employees

827

977

Numismatic collections

802

1,224

Receivables from domestic banks

742

572

Other miscellaneous assets

491

476

Giro accounts

134

212

8,571

10,920

TOTAL

As of 31 December 2013, prepaid expenses include expenditure of KM 4,294 thousand


incurred on the production of banknotes and coins (31 December 2012: KM 7,246 incurred on
the production of banknotes). As explained in Note 3.13 such costs are initially deferred and
subsequently amortized over a period of three years.

Annual Report 2013

10.

91

PROPERTY, EQUIPMENT AND INTANGIBLE ASSETS

Software
and other
intangible
assets

Land
and
buildings

Equipment and
furniture

13,411

25,457

22,998

1,855

781

4,946

69,448

Additions

158

841

4,805

5,808

Write offs

(78)

(1,080)

(9)

(1,167)

Transfers

105

50

(155)

Corrections

(32)

(32)

13,564

25,457

22,809

1,855

776

9,596

74,057

Additions

29

310

128

6,256

6,730

Write offs

(90)

(845)

(119)

(7)

(1,061)

Transfers

91

(91)

13,503

25,457

22,365

1,864

776

15,761

79,726

12,313

1,988

16,975

1,159

490

32,925

Charge for the year

461

367

1,702

254

62

2,846

Write offs

(80)

(1,068)

(9)

(1,157)

12,694

2,355

17,609

1,413

543

34,614

Charge for the year

383

368

1,620

196

60

2,627

Write offs

(90)

(842)

(114)

(7)

(1,053)

12,987

2,723

18,387

1,495

596

36,188

As at
1 January 2013

870

23,102

5,200

442

233

9,596

39,443

As at
31 December 2013

516

22,734

3,978

369

180

15,761

43,538

In thousands
of KM

Assets
Vehicles Other under construction

TOTAL

Cost
As at 1
January 2012

As at
31 December 2012

As at
31 December 2013
Accumulated
depreciation and
amortization
As at
1 January 2012

As at
31 December 2012

As at
31 December 2013
Net book value

Assets under construction as at 31 December 2012 and 2013 relates mainly to business premises
not yet put into use, which are located in Banja Luka.

92

11.

Central Bank of Bosnia and Herzegovina

OTHER INVESTMENTS

The structure of other investments is as follows:


In thousands of KM

31 December
2013

31 December
2012

Equity securities:
Shares in Bank for International Settlements (BIS),
Basel (Note 17)
Shares in SWIFT
TOTAL

27,803

27,803

10

10

27,813

27,813

During the year the Bank received dividend income from BIS in the amount of KM 755
thousand (2012: KM 767 thousand) (Note 21).

12.

CURRENCY IN CIRCULATION

Currency in circulation can be analysed as follows:


In thousands of KM
Currency placed into circulation - opening balance as
of 1 January
Increase in currency in circulation during the year
Currency placed into circulation - balance as of 31
December

2013

2012

2,747,512

2,645,056

162,346

102,456

2,909,858

2,747,512

Of the total currency placed into circulation of KM 2,909,858 thousand as at 31 December


2013, KM 605 thousand was placed into circulation outside of Bosnia and Herzegovina (2012:
KM 605 thousand out of KM 2,747,512 thousand).

Annual Report 2013

31 December 2013
KM

Nominal
value

Pieces

93

31 December 2012

Value in
KM000

Pieces

Value in
KM000

Coins

0.05

41,504,424

2,075

38,347,358

1,917

Coins

0.10

71,943,083

7,194

69,723,476

6,973

Coins

0.20

51,793,579

10,359

49,844,104

9,969

Coins

0.50

26,693,522

13,347

25,488,935

12,744

Coins

36,808,777

36,809

35,015,480

35,015

Coins

9,964,625

19,929

9,398,439

18,797

Coins

7,441,447

37,207

6,994,548

34,973

Banknotes

10

8,914,375

89,144

8,413,769

84,138

Banknotes

20

7,003,336

140,067

6,758,745

135,175

Banknotes

50

15,862,875

793,144

15,872,707

793,635

Banknotes

100

12,732,714

1,273,271

11,121,368

1,112,137

Banknotes

200

2,436,561

487,312

2,510,195

502,039

293,099,318

2,909,858

279,489,124

2,747,512

TOTAL

13.

DEPOSITS FROM BANKS

The structure of deposits from banks is given in the following table


In thousands of KM
Deposits of local commercial banks

31 December
2013

31 December
2012

3,470,626

3,036,346

3,863

3,863

Other liabilities towards local commercial banks

635

195

Reserve accounts of organizational units of the Bank

134

212

3,475,258

3,040,616

Special deposit of local commercial banks blocked


funds

TOTAL

Deposits of local domestic commercial banks are placed in accordance with obligatory reserve
requirements for those banks to meet obligations for settling debts and for the transactions
between commercial banks and the Central Bank of Bosnia and Herzegovina. On 31 December
2013 the total amount of KM 3,470,626 thousand represented deposits of 28 banks (2012: 29
banks).
Interest on deposits from local commercial banks is calculated according to the Law on the
Central Bank of Bosnia and Herzegovina, and the interest rate during the year ranged from
0,00% p.a. to 0.17% p.a. (2012: from 0,00% p.a. to 0,11% p.a.). Interest rates on deposits placed
by local commercial banks during the year are given in Note 18.
Deposits from banks include KM 339 thousand of accrued interest as at 31 December 2013
(2012: KM 15 thousand).

94

14.

Central Bank of Bosnia and Herzegovina

DEPOSITS FROM THE GOVERNMENT AND OTHER DEPOSITORS

The structure of deposits from the Government and other depositors is given in the following
table:
In thousands of KM

31 December
2013

Deposits for the budget of BiH Institutions

31 December
2012

196,283

123,684

Deposit account under International Monetary Fund


transactions

54,493

53,833

Deposits of public institutions

15,878

13,548

7,429

7,811

274,083

198,876

Deposits of other governments and government


institutions
TOTAL

Deposits from the Government and other depositors are non-interest bearing, except for the
deposit account under IMF transactions.

15.

PROVISIONS FOR LIABILITIES AND CHARGES

Provisions for liabilities and charges relate to provisions for employees severance payments.
Movement in provisions for liabilities and charges is presented below:

In thousands of KM

2013

2012

Opening balance as of 1 January

869

726

Compensations paid

(90)

(111)

Net charge to the income statement (Note 22)

212

254

Closing balance as of 31 December

991

869

16.

OTHER LIABILITIES

The structure of other liabilities is presented in the following table:


In thousands of KM
Liabilities based on allocation of profit to the state
budget (Note 24)

31 December
2013

31 December
2012

18,052

20,480

2,295

1,147

IMF Accounts No. 1 and 2

961

1,002

Accrued expenses and other liabilities

162

147

Deferred income

152

193

World Bank deposits

68

154

Liabilities to employees

36

21,726

23,126

Suppliers

TOTAL

Annual Report 2013

95

17. CAPITAL
The structure of capital is presented in the following table:
In thousands of KM
Subscribed capital

31 December
2013

31 December
2012

25,000

25,000

505,552

493,518

31,300

31,300

Fair value reserves monetary gold

(79,316)

(6,572)

Fair value reserves financial assets available-for-sale

(16,191)

32,500

TOTAL

466,345

575,746

General reserves (Retained earnings)


Other reserves

Subscribed capital
Subscribed capital represents nominal capital paid in on 12 June 1998 in accordance with the
Law on Central Bank of Bosnia and Herzegovina.
General reserves (Retained earnings)
General reserves (Retained earnings) comprise accumulated undistributed profits of the Bank
since the beginning of its operations on 11 August 1997.
Other reserves
Other reserves relate to following:
reserves from grants in the amount of KM 3,497 thousand, which relate to grants received in
cash from the Council of Ministers of Bosnia and Herzegovina on 12 June 1998. The status
of these reserves is regulated by the Decision of the Governing Board of the Central Bank
of Bosnia and Herzegovina with the approval of the Presidency of Bosnia and Herzegovina.
The right to utilise the reserves from grants fall within the competence of the Governing
Board of the Central Bank of Bosnia and Herzegovina.
amounts received in accordance with the Succession Agreement of the former Yugoslavia
in the amount of KM 27,803 thousand and relates to shares in Bank for International
Settlements Brussels (BIS), Basel (see also Note 11).
Fair value reserves
Fair value reserves represent unrealized gains or losses incurred as a result of measurement of
the financial assets available-for-sale and monetary gold.

96

Central Bank of Bosnia and Herzegovina

18.

INTEREST INCOME AND EXPENSES


In thousands of KM

For the year ended


31 December
2013

2012

29,365

25,358

1,203

551

762

6,236

31,334

32,147

(1,060)

(993)

(1,060)

(993)

30,274

31,154

Interest income arising from:


- financial assets available-for-sale (Note 6)
- held-to-maturity investments (Note 8)
- deposit with foreign banks
- other

Interest expenses arising from:


- deposits from local commercial banks
Net interest income

The base for calculation of interest on commercial banks deposits includes the total deposits
of commercial banks on reserve accounts, which consists of obligatory reserve amounts and
excess amounts above the obligatory reserve requirement.
The base for calculation of the obligatory reserve of commercial banks consists of deposits
and borrowings, except borrowings received from non-residents and all funds placed by
governments of entities into development projects.
The rate of eligible deposits and borrowings required to be held in obligatory reserve accounts
was as follows:

Short-term deposits and borrowings


Long-term deposits and borrowings

(in %)
10.00
7.00

During reporting periods the interest rate calculated on the obligatory reserves is 70% of the
rate based on the weighted average of interest rates achieved by the Bank in the same period on
deposits invested up to one month.
During reporting periods the interest rate calculated on the amount exceeding the obligatory
reserves is 90% of the rate based on the weighted average of interest rates achieved by the Bank
in the same period on deposits invested up to one month.

Annual Report 2013

19.

97

FEE AND COMMISSION INCOME AND EXPENSES

For the year ended


31 December

In thousands of KM

2013

2012

7,208

7,819

569

622

7,777

8,441

(708)

(389)

(708)

(389)

7,069

8,052

Fee and commission income:


- from local commercial banks
- from services for the Government and other non-banking
clients
Fee and commission expenses:
- transactions with foreign banks

20.

Net fee and commission income

NET FOREIGN EXCHANGE (LOSSES)



In thousands of KM
Income from foreign exchange differences
Expenses from foreign exchange differences
Net (losses)

21.

2013

2012

841

31.726

(895)

(36.252)

(54)

(4,526)

OTHER INCOME

In thousands of KM
Dividend income (Note 11)
Income from grants
Other income
TOTAL

For the year ended


31 December

For the year ended


31 December
2013

2012

755

767

41

75

949

977

1,745

1,819

98

22.

Central Bank of Bosnia and Herzegovina

PERSONNEL EXPENSES

In thousands of KM

For the year ended


31 December
2013

2012

10,160

10,150

Taxes and contributions

5,790

5,800

Other employee benefits

2,223

2,273

212

254

18,385

18,477

Salaries

Provisions for severance payments (Note 15)


TOTAL

Personnel costs include KM 3,412 thousand (2012: KM 3,366 thousand) of defined pension
contributions paid into the public pension funds in Bosnia and Herzegovina. Contributions
are calculated as percentage of the gross salary.
As at 31 December 2013 the Bank had 347 employees (2012: 348 employees).

23.

ADMINISTRATIVE AND OTHER OPERATING EXPENSES



In thousands of KM

For the year ended


31 December
2013

2012

Expenses for production and design of banknotes and


coins

3,254

2,204

Maintenance costs

2,278

2,348

Other administrative and operating expenses

4,698

4,379

10,230

8,931

TOTAL

Annual Report 2013

24.

99

PROFIT ALLOCATION

The allocation of the net profit is carried out in accordance with the Law on the Central Bank
of Bosnia and Herzegovina.
The provisions of the above mentioned Law define the criteria of the net profit allocation,
according to which the Bank allocates 60% of the current profit to the account of the institution
responsible for the Budget of Bosnia and Herzegovina, provided that the amount of the
subscribed capital and general reserves (retained earnings) is equal or higher than 5,00% of the
total monetary liabilities.
This ratio, before the profit allocation in 2013 amounted to 7.79% (2012: 8.43%). According to
the Decision of the Governing Board 60% of the net profit for the financial year of 2013 in the
amount of KM 18,052 thousand (2012: KM 20,480 thousand) was allocated to the state budget,
and 40%, i.e. the amount of KM 12,034 thousand was allocated to the general reserves (retained
earnings) of the Bank (2012: KM 13,654 thousand).

2013
Before profit allocation

Monetary liabilities (Currency in circulation and domestic deposits)


Subscribed capital and general reserves (retained earnings)
Ratio - subscribed capital and general reserves (retained earnings) / monetary
liabilities

Profit allocation
Net profit before allocation

(in KM000)
6,659,199
518,518
7.79%

(in KM000)
30,086

Allocation of profit to the state budget

18,052

Allocation of profit to general reserves (retained earnings)

12,034

After profit allocation

Subscribed capital and general reserves (retained earnings)


Ratio - Subscribed capital and general reserves (retained earnings)/ monetary liabilities

(in KM000)
530,552
7.97%

100

Central Bank of Bosnia and Herzegovina

2012
Before profit allocation

(in KM000)

Monetary liabilities (Currency in circulation and domestic deposits)

5,987,004

Subscribed capital and general reserves (retained earnings)

504,864

Ratio - subscribed capital and general reserves (retained earnings) / monetary


liabilities

Profit allocation

8.43%

(in KM000)

Net profit before allocation

34,134

Allocation of profit to the state budget

20,480

Allocation of profit to general reserves (retained earnings)

13,654

After profit allocation

(in KM000)

Subscribed capital and general reserves (retained earnings)

518,518

Ratio - Subscribed capital and general reserves (retained earnings) / monetary


liabilities

25.

8.66%

CASH AND CASH EQUIVALENTS

For the purposes of the cash flow statement, cash and cash equivalents comprise of:
In thousands of KM
Foreign currency deposits with remaining maturity under three
months
Foreign currency demand deposits
Foreign currency in cash
Special Drawing Rights in the International Monetary Fund
Giro accounts
TOTAL

31 December 31 December
2013 2012
2,056,166

1,030,255

161,432

1,265,142

91,609

133,195

2,728

4,525

134

212

2,312,069

2,433,329

Annual Report 2013

26.

101

RELATED PARTY TRANSACTIONS

In the normal course of its operations, the Bank enters into transactions with related parties.
Having in mind that the Bank has been established by a Legal Act passed by Parliamentary
Assembly of Bosnia and Herzegovina and that the initial capital has been paid up by the
Council of Ministers of Bosnia and Herzegovina, transactions performed as part of regular
operations of the Bank with the state and state institutions represent related party transactions.
In addition, the Bank considers that it has an immediate related party relationship with its
key management personnel, close family members of key management personnel, and entities
controlled, jointly controlled or significantly influenced by key management personnel and
their close family members.
Transactions with the state and state institutions are disclosed in the following table:
In thousands of KM 2013

Exposure Liabilities

Income

Expenses

State

268,438

State institutions
Indirect taxation authority of Bosnia and
Herzegovina
Deposit Insurance Agency

6,206

36

TOTAL

274,680

Exposure Liabilities

Income

Expenses

In thousands of KM 2012

State

188,304

State institutions
Indirect taxation authority of Bosnia and
Herzegovina
Deposit Insurance Agency

15,801

TOTAL

204,112

Remuneration of key management members


The total remuneration of the members of the key personnel (members of Management, Governing Board and Office of the Main Internal Auditor) in 2013 amounted to KM 1,376 thousand, out of which KM 885 thousand was related to salaries and other remuneration and KM
491 thousand to taxes and contributions (in 2012 out of total amount of KM 1,486 thousand
the amount of KM 955 thousand was related to salaries and other remuneration and KM 531
thousand was related to taxes and contributions).

102

27.

Central Bank of Bosnia and Herzegovina

RISK MANAGEMENT

The major financial risks to which the Bank is exposed are as follows:


Liquidity risk
Market risk
Credit risk.

This note presents information about the Banks exposure to each of the above risks, the Banks
objective, policies and procedures for measuring and managing risks.
Given that the primary purpose of the Bank is to preserve monetary stability in Bosnia and
Herzegovina, its financial risk framework is different from the framework of commercial
banks. The majority of financial risks in the Bank occur based on the management of foreign
currency reserves and based on financial market operations.
The Bank seeks to ensure that strong and effective risk management and control system are in
place for identifying, assessing, monitoring and managing risk exposures. Risk management
and estimation of the level of acceptable risk is a continuous process and the integral element
of the Banks business strategy. By instruments of business policy and control mechanisms
through the level of the Governing Board of the Bank, the Management, Audit Committee and
Investment Committee of the Bank, completeness in risk management is provided. Holding
foreign exchange reserves in convertible currency at fixed exchange rate arrangement, investing
in short term deposits with fixed interest rate in foreign banks with high credit ratings and in
quality securities are the basic principles of managing liquidity risk, foreign exchange, interest
rate and credit risk.
27.1.

Liquidity risk

Liquidity risk is the risk that the Bank will encounter difficulties in meeting obligations
associated with its financial liabilities that are settled by delivering cash or another financial
asset.
The ultimate responsibility for liquidity risk management lies with the Management, which
has created an adequate framework for the management of liquidity risk. The Bank manages
this type of risk by investing mainly in short-term deposits with foreign banks and in securities
with maturities within seven and half years and by constantly monitoring the projected and
actual cash flows.
The following tables present the Banks remaining contractual maturity for its non-derivative
financial liabilities. The tables have been drawn up based on the undiscounted cash flows of
financial liabilities based on the earliest date on which the Bank can be required to pay. The
table includes both interest and principal cash flows.

Annual Report 2013

Less than
3 months

3-12 months

From 1
year to 3
years

Over 3
years

103

Total

31 December 2013

Non-interest bearing

3,138,503

20,995

3,159,498

Variable interest rate


instruments

3,525,119

3,525,119

6,663,622

20,995

6,684,617

Non-interest bearing

2,899,250

21,540

2,920,790

Variable interest rate


instruments

3,090,179

3,090,179

5,989,429

21,540

6,010,969

Fixed interest rate


instruments
TOTAL
31 December 2012

Fixed interest rate


instruments
TOTAL

The following tables present the Banks remaining contractual maturity for its non-derivative
financial assets. The tables have been drawn up based on the undiscounted cash flows of the
financial assets including interest that will be earned on those assets except where the Bank
anticipates that the cash flow will occur in a different period. This excludes the treatment of
derivatives, since the Bank is not exposed to derivative financial instruments as of December
31, 2013 and 2012 respectively.
Less than
3 months

From 1 year
to 3 years

3-12 months

Over 3
years

Total

31 December 2013

Non-interest bearing

258,271

258,275

Variable interest rate


instruments

164,159

755

164,914

Fixed interest rate


instruments

6,560,822

78,233

156,828

239,804

7,035,687

TOTAL

6,983,252

78,991

156,829

239,804

7,458,876

Non-interest bearing

294,226

294,234

Variable interest rate


instruments

1,269,667

767

1,270,434

Fixed interest rate


instruments

4,816,235

126,631

139,617

225,877

5,308,360

TOTAL

6,380,128

127,401

139,622

225,877

6,873,028

31 December 2012

104

Central Bank of Bosnia and Herzegovina

Maturity analysis
Tables below present the assets and liabilities of the Bank as at 31 December 2013 and 2012
classified into relevant maturity groupings based on the remaining period from the reporting
date to the contractual maturity date, except for debt securities available for sale which have
been classified in accordance with their secondary liquidity characteristics as maturing within
one month and currency in circulation which has been classified in the maturity period within
one month. Equity securities, that are part of assets and liabilities which do not have contractual
maturity, are classified as without specified maturity.

31 December 2013
In thousands of KM
Foreign currency in cash
Deposits with foreign banks
Special Drawing Rights with the
International Monetary Fund
Financial assets available-for-sale
Monetary gold

From
3 to 12
months

Up to 3
months

From
1 to 3
years

Without
specified
maturity

Over 3
years

Total

91,609

91,609

2,217,751

2,217,751

2,728

2,728

4,504,459

75,397

151,068

135,040

4,865,964

164,144

164,144

2,709

5,418

104,353

112,480

2,561

885

343

411

4,371

8,571

Property, equipment and intangible


assets

43,538

43,538

Other investments

27,813

27,813

78,991 156,829

Held-to-maturity investments
Other assets

TOTAL ASSETS

6,983,252

239,804

75,721

7,534,597

Currency in circulation

2,909,858

2,909,858

Deposits from banks

3,476,239

2,943

3,479,182

Deposits from the Government and


other depositors

274,083

274,083

Provisions for liabilities and charges

11

12

141

827

991

3,442

18,052

232

21,726

Subscribed capital

25,000

25,000

General reserves
(Retained earnings)

505,552

505,552

Other reserves

31,300

31,300

Fair value reserve

(95,509)

(95,507)

Total capital and reserves

(95,509)

561,854

466,345

6,568,124

21,007

141

827

562,086

7,152,185

57,984 156,688

238,977

(486,365)

382,412

Other liabilities

Total liabilities, capital and


reserves
LIQUIDITY GAP

415,128

Annual Report 2013

31 December 2012
In thousands of KM
Foreign currency in cash
Deposits with foreign banks
Special Drawing Rights with the
International Monetary Fund
Financial assets available-forsale
Monetary gold
Held-to-maturity investments
Other assets

From
3 to 12
months

Up to 3
months

From
1 to 3
years

Over 3
years

Without
specified
maturity

105

Total

133,195

133,195

2,295,415

39,123

2,334,538

4,525

4,525

84,664 133,701

118,391

4,122,672

3,785,916
158,979

158,979

2,709

5,418

107,062

115,189

2,098

905

503

424

6,989

10,919

Property, equipment and


intangible assets

39,443

39,443

Other investments

27,813

27,813

127,401 139,622

225,877

74,245

6,947,273

TOTAL ASSETS

6,380,128

Currency in circulation

2,747,512

2,747,512

Deposits from banks

3,040,677

1,060

3,041,737

198,876

198,876

46

34

84

705

869

2,364

20,480

283

23,127

Subscribed capital

25,000

25,000

General reserves
(Retained earnings)

493,518

493,518

Deposits from the Government


and other depositors
Provisions for liabilities and
charges
Other liabilities

31,300

31,300

Fair value reserve

Other reserves

25,926

25,928

Total capital and reserves

25,926

549,820

575,746

6,015,401

21,574

84

705

550,103

6,587,867

106,581 139,538

225,173

(475,859)

360,161

Total liabilities, capital and


reserves
LIQUIDITY GAP

364,729

106

27.2.

Central Bank of Bosnia and Herzegovina

Market risk

Market risk is the risk that changes in market prices, such as interest rates, equity prices and
foreign exchange rates will affect the Banks income or the value of its holdings of financial
instruments. The objective of market risk management is to manage and control market risk
exposures with acceptable parameters, while optimising the return on risk.
27.2.1 Foreign exchange risk
The Bank is exposed to currency risk through transactions in foreign currencies. This is the risk
that the value of a financial instrument will fluctuate because of changes in foreign exchange
rates. Foreign currency exposure arises from deposit and investment activities.
The control and management of the foreign exchange risk is based on the strict adherence to
the provisions of the Law on the Central Bank of Bosnia and Herzegovina and the Guidelines
of the Central Bank on investment of the foreign exchange reserves.
The above framework defines the limits for holding assets and liabilities in each foreign
currency. The biggest part of monetary assets is held in EUR, and the maximum amount that
can be held in other convertible currencies, subject to the changes in the market rate, must not
exceed 50% of the total amount of the capital and the reserves of the Bank.

Annual Report 2013

107

The Bank had the following foreign currency position as at 31 December 2013 and 31
December 2012.

31 December 2013
In thousands of KM
Foreign currency in cash
Deposits with foreign banks
Special Drawing Rights with the
International Monetary Fund
Financial assets available-for-sale
Monetary gold
Held-to-maturity investments
Other assets
Property, equipment and intangible
assets
Other investments
Total assets
Currency in circulation

EUR

Other
foreign
currencies

USD

KM

Total

91,539

18

52

91,609

2,216,765

826

2,217,598

2,728

2,728

4,486,402

4,486,402

164,144

164,144

105,858

105,858

173

8,398

8,571

43,538

43,538

10

27,803

27,813

6,900,747

164,988

2,787

79,739 7,148,261

2,909,858

2,909,858

635

3,474,623

3,475,258

Deposits from the Government and


other depositors

274,083

274,083

Provisions for liabilities and charges

991

991

385

73

21,266

21,726

Deposits from banks

Other liabilities
Subscribed capital

25,000

25,000

505,552

505,552

3,497

27,803

31,300

Fair value reserves monetary gold

(79,316)

(79,316)

Fair value reserves financial assets


available-for-sale

(16,191)

(16,191)

Total capital and reserves

12,306

454,039

466,345

Total liabilities, capital and reserves

13,326

73

6,887,421

164,986

General reserves (Retained earnings)


Other reserves

NET FOREIGN EXCHANGE


POSITION

7,134,860 7,148,261

2,714 (7,055,121)

108

Central Bank of Bosnia and Herzegovina

Other
foreign
currencies

31 December 2012
In thousands of KM

EUR

Foreign currency in cash

133,117

21

57

133,195

2,331,445

2,876

193

2,334,514

4,525

4,525

3,770,039

3,770,039

158,979

158,979

107,317

107,317

Other assets

10,914

10,920

Property, equipment and


intangible assets

39,443

39,443

10

27,803

27,813

6,341,934

161,876

4,775

78,160

6,586,745

2,747,512

2,747,512

196

3,040,420

3,040,616

Deposits from the Government


and other depositors

198,876

198,876

Provisions for liabilities and


charges

869

869

Deposits with foreign banks


Special Drawing Rights with the
International Monetary Fund
Financial assets available-for-sale
Monetary gold
Monetary gold
Held-to-maturity investments

Other investments
Total assets
Currency in circulation
Deposits from banks

Other liabilities

USD

KM

Total

205

73

22,844

23,126

25,000

25,000

493,518

493,518

3,497

27,803

31,300

(6,572)

25,928

Fair value reserves financial


assets available-for-sale

32,500

32,500

Total capital and reserves

60,997

514,749

575,746

Total liabilities, capital and


reserves

61,398

73

6,525,270

6,586,745

6,280,536

161,872

4,702

(6,447,110)

Subscribed capital
General reserves (Retained
earnings)
Other reserves
Fair value reserves monetary
gold

NET FOREIGN EXCHANGE


POSITION

Annual Report 2013

109

27.2.1.1. Foreign exchange risk - Sensitivity analysis


The Bank is not exposed to EUR foreign currency risk due to currency board arrangement
aligning KM to EUR at fixed exchange rate of EUR 1: KM 1.95583.
The sensitivity analysis includes outstanding foreign currency denominated monetary items
at the balance sheet date and indicates the effects of the assumed changes in foreign currency
rates on the reported profit and equity. The table below provides an analysis of the Banks main
currency exposures. A positive number indicates an increase in income statement and increase
in equity where the KM weakens i.e. strengthens against the relevant currency.
2013

USD

CHF

GBP

SDR

Other

KM000

+/- 2%

+/- 1%

+/- 2%

+/- 1%

+/- 1%

Foreign exchange rate risk


(on P&L)

17/(17)

0/(0)

(1)/1

27/(27)

0/(0)

2012

USD

CHF

GBP

SDR

Other

KM000

+/- 3%

+/- 1%

+/- 2%

+/- 2%

+/- 2%

Foreign exchange rate risk


(on P&L)

4,856/
(4,856)

2/(2)

(1)/1

91/(91)

0/(0)

2013

USD

CHF

GBP

SDR

Other

KM000

+/- 2%

+/- 1%

+/- 2%

+/- 1%

+/- 1%

Foreign exchange rate risk


(on Equity)

3,283/
(3,283)

0/(0)

0/(0)

0/(0)

0/(0)

2012

USD

CHF

GBP

SDR

Other

KM000

+/- 3%

+/- 1%

+/- 2%

+/- 2%

+/- 2%

Foreign exchange rate risk


(on Equity)

0/(0)

0/(0)

0/(0)

0/(0)

0/(0)

27.2.2. Interest rate risk


The Banks exposure to market risk for changes in interest rates is concentrated in its investment
portfolio. The Banks operations are subject to the risk of interest rate fluctuations to the extent
that interest earning assets and interest bearing liabilities mature or reprice at different time or
in different amounts.
The Bank is exposed to interest rate risk through investment of foreign currency reserves.
The Bank manages its investment portfolio with the aim to minimize interest rate risk. The
investments bear different interest rates, depending on the time period of the investment, with
the maximum term of investment being one year for deposits and seven and half years for
securities.

110

Central Bank of Bosnia and Herzegovina

The tables below summarize the Banks exposure to interest rate risk at year-end.

31 December 2013
In thousands of KM
Foreign currency in cash
Deposits with foreign
banks
Special Drawing Rights
with the International
Monetary Fund
Available for sale financial
assets
Monetary gold
Held-to-maturity investments
Other assets
Property, equipment and
intangible assets
Other investments

From
3 to12
months

Up to 3
months

From 1
to 3 years

Over 3
years

Non-interest
bearing

Total

91,609

91,609

2,217,408

190

2,217,598

2,727

2,728

1,549,673

2,852,319

38,792

45,618

4,486,402

164,144

164,144

104,519

1,339

105,858

35

105

284

398

7,749

8,571

43,538

43,538

27,813

27,813

3,874,362

2,852,424

39,076

398

2,909,858

2,909,858

3,470,287

4,971

3,475,258

54,493

219,590

274,083

Provisions for liabilities and


charges

991

991

Other liabilities

21,726

21,726

Subscribed capital

25,000

25,000

General reserves
(Retained earnings)

505,552

505,552

Other reserves

31,300

31,300

(79,316)

(79,316)

Total assets
Currency in circulation
Deposits from banks
Deposits from the
Government and other
depositors

Fair value reserves


monetary gold

382,001 7,148,261

Fair value reserves


financial assets
available-for-sale

(16,191)

(16,191)

Total capital and reserves

466,345

466,345

Total liabilities, capital


and reserves

3,524,780

INTEREST RATE GAP

349,582

2,852,424

39,076

398

3,623,481 7,148,261
(3,241,480)

Annual Report 2013

31 December 2012
In thousands of KM
Foreign currency in cash

From
3 to12
months

Up to 3
months

From 1
to 3 years

Over 3
years

Non-interest
bearing

111

Total

133,195

133,195

2,295,376

39,117

21

2,334,514

4,525

4,525

943,328

2,780,062

46,649

3,770,039

Monetary gold

158,979

158,979

Held-to-maturity
investments

106,025

1,292

107,317

37

108

424

399

9,952

10,920

Property, equipment and


intangible assets

39,443

39,443

Other investments

27,813

27,813

3,243,266

2,925,312

424

399

417,344

6,586,745

2,747,512

2,747,512

3,036,331

4,285

3,040,616

53,833

145,043

198,876

Provisions for liabilities and


charges

869

869

Other liabilities

23,126

23,126

Subscribed capital

25,000

25,000

General reserves
(Retained earnings)

493,518

493,518

Other reserves

31,300

31,300

Fair value reserves


monetary gold

(6,572)

(6,572)

Fair value reserves


financial assets availablefor-sale

32,500

32,500

Total capital and reserves

Deposits with foreign


banks
Special Drawing Rights
with the International
Monetary Fund
Available for sale financial
assets

Other assets

Total assets
Currency in circulation
Deposits from banks
Deposits from the
Government and other
depositors

575,746

575,746

Total liabilities, capital


and reserves

3,090,164

3,496,581

6,586,745

INTEREST RATE GAP

153,102

2,925,312

424

399

(3,079,237)

112

Central Bank of Bosnia and Herzegovina

27.2.2.1. Interest rate risk - Sensitivity analysis


The sensitivity analyses below have been determined based on the exposure to interest rates
for financial assets and financial liabilities at the balance sheet date and the assumed change of
interest rate taking place at the beginning of the financial year and held constant throughout
the reporting period.
The table below provides an sensitivity analysis of the Banks interest rate exposures in main
currencies based on the sensitivity range of +30/-5bp (2012: +30/-5bp) depending on the
currency (which reflects Banks assessment of the possible change in interest rates). A positive
number indicates an increase in income statement and increase in equity where the rates
according to new scenario are higher, i.e. lower then as of reporting dates.

2013

KM

EUR

SDR

KM000

+30/-5bp

+30/-5 bp

+20/-5bp

Interest rate risk


(on P&L)

(10,411)/1,735

(34,270)/5,765

5/(1)

2012

KM

EUR

SDR

KM000

+20/-1bp

+30/-5 bp

+20/-5bp

Interest rate risk


(on P&L)

(6,073)/304

(26,705)/4,491

9/(2)

2013

KM

EUR

SDR

KM000

+30/-5bp

+30/-5 bp

+20/-5bp

Interest rate risk


(on equity)

0/0

339/(57)

0/0

2012

KM

EUR

SDR

KM000

+20/-1bp

+30/-5 bp

+20/-5bp

Interest rate risk


(on equity)

0/0

(473)/80

0/0

27.3.

Credit risk

Credit risk is the risk of financial loss to the Bank if counterparty to a financial instrument
fails to meet its contractual obligation and rises principally from the Banks deposits with other
banks and investments into securities (foreign currency reserves). The management of this risk
is performed through the selection of counterparties with sound credit ratings, by limiting the
maturity, and by controlling the volume and the dynamics of investment. The credit ratings are
continuously monitored on a daily basis.
For the funds recorded in off-balance sheet records, the Bank is not exposed to credit risk, as
all the risk, which may result from the investments of these funds, is to be borne contractually
by the owners of these funds (see also Note 29).

Annual Report 2013

113

27.3.1. Credit risk concentration


The Bank is exposed to credit risk through the deposits with foreign banks, available-for-sale
financial assets and held to maturity investments.
Maximum exposure to credit risk before collateral held or other credit enhancements
The following table shows the maximum exposure of the Bank to the credit risk
Maximum exposure

31 December
31 December
2013 2012

In thousands of KM
Balance sheet exposure
Deposits with foreign banks

2,217,598

2,334,514

Financial assets available-for-sale

4,486,402

3,770,039

Held-to-maturity investments
TOTAL

105,858

107,317

6,809,858

6,211,870

The Bank does not hold any collateral or other credit enhancements to cover this credit risk as
the Bank invests its assets with the counterparties that have the highest credit ratings.
As of 31 December 2013 Bank does not have any assets that are neither past due or impaired.
Concentration of credit risk
The deposits placed with foreign banks in total amounted to KM 2,217,598 thousand of 31
December 2013 (2012: KM 2,334,514 thousand). The largest portion of these funds is invested
in one foreign bank (2012: two foreign banks), with individual exposures exceeding total
Capital and Reserves of the Bank.
Individual credit risk concentration exceeding total capital and reserves of the Bank:
31 December 2013
Bank rating
AAA

Deposits in
KM000
1,395,360

31 December 2012
% of total
deposits

Bank rating

Deposits in
KM000

% of total
deposits

62.92

AAA

816,094

34.96

AAA

727,100

31.15

The largest individual risk exposure as at 31 December 2013 amounts to KM 1,395,360 thousand (2012: KM 816,094 thousand).

114

Central Bank of Bosnia and Herzegovina

Concentration per credit rating


Deposits with foreign banks:
Bank rating
AAA

31 December 2013

31 December 2012

KM000

KM000

1,847,897

83.33

1,741,627

74.60

A+

166,273

7.12

AA

56,740

2.56

426,614

18.27

312,961

14.11

2,217,598

100.00

2,334,514

100.00

A
TOTAL

Financial assets available-for-sale:


Bank rating

31 December 2013

31 December 2012

KM000

KM000

AAA

1,278,744

28.50

2,840,078

75.33

AA+

984,864

21.95

AA

930,586

20.74

371,176

9.85

558,785

14.82

BBB+

1,292,208

28.81

TOTAL

4,486,402

100.00

3,770,039

100.00

A-

Held-to-maturity investments:
Bank rating

31 December 2013

31 December 2012

KM000

KM000

AAA

105,858

100.00

107,317

100.00

TOTAL

105,858

100.00

107,317

100.00

Geographical concentration
31 December 2013

31 December 2012

KM000

KM000

Luxembourg

1,395,360

20.49

737,226

11.87

France

1,299,780

19.09

1,706,916

27.48

Italy

1,292,208

18.98

558,785

9.00

Belgium

930,586

13.67

371,176

5.98

Netherlands

647,984

9.52

818,948

13.18

Germany

483,339

7.10

1,358,813

21.87

Austria

324,964

4.77

450,579

7.25

Switzerland

284,181

4.16

2,851

0.04

Finland

151,456

2.22

206,576

3.33

100.00

6,211,870

100.00

TOTAL

6,809,858

Geographical concentration per individual financial asset is disclosed in Note 5, 6 and 8 of

Annual Report 2013

115

these financial statements.

28.

FAIR VALUE MEASUREMENT

This note provides information about how the Bank determines fair values of various financial assets and financial liabilities.

28.1 Fair value of the Banks financial assets and financial liabilities that are measured at
fair value on a recurring basis
Some of the Banks financial assets and financial liabilities are measured at fair value at the end
of each reporting period. The following table gives information about how the fair values of
these financial assets and financial liabilities are determined (in particular, the valuation technique(s) and inputs used).
Financial
assets /
financial
liabilities

Fair value as at
31 December
2013

1) Financial
assets available
for sale (see
Note 6)

Fair value
hierarchy

Valuation
technique(s)
and key
input(s)

Level 1

Quoted bid
prices in an
active market

Level 1

Quoted bid
prices in an
active market

31 December 2012

Listed equity securities


on stock exchanges in
other countries:

Listed equity securities


on stock exchanges in
other countries:

Italy KM 1,292,208
thousand

Italy KM 558,785
thousand

France KM 984,864
thousand

France KM 1,354,866
thousand

Belgium KM 930,586
thousand

Belgium KM 371,176
thousand

Netherlands KM
603,143 thousand

Netherlands KM
606,650 thousand

Austria KM 263,947
thousand

Austria KM 389,287
thousand

Germany KM 260,198 Germany KM 272,573


thousand
thousand
Finland KM 151,456
thousand

Finland KM 206,576
thousand
Luxemburg KM 10,126
thousand

2) Monetary
gold (see Note
7)

Listed equity securities


on stock exchanges in
other countries:

Listed equity securities


on stock exchanges in
other countries:

Switzerland KM
164,144 thousand

SwitzerlandKM
158,979 thousand

116

Central Bank of Bosnia and Herzegovina

28.2 Fair value of the Banks financial assets and financial liabilities that are not
measured at fair value on a recurring basis (but fair value disclosures are
required)
Except as detailed in the following table, the Management consider that the carrying amounts
of financial assets and financial liabilities recognized in the financial statements approximate
their fair values.
31 December 2013

31 December 2012
Carrying
amount

Carrying amount

Fair value

Fair value

2,217,598

2,207,627

2,334,514

2,325,852

105,858

104,919

107,317

108,032

3,475,258

3,460,684

3,040,616

3,027,739

274,083

272,934

198,876

198,034

Financial assets
Loans and receivables
- deposits with foreign banks
- held-to-maturity investments
Financial liabilities
Financial liabilities held at
amortized cost:
- deposits from banks
- deposits from the Government
and other depositors

Fair value hierarchy as at 31 December 2013


Nivo 1

Nivo 2

Nivo 3

Ukupno

- deposits with foreign banks

2,217,598

2,217,598

- held-to-maturity investments

105,858

105,858

2,323,456

2,323,456

- deposits from banks

3,475,258

3,475,258

- deposits from the Government and other


depositors

274,083

274,083

3,750,241

3,750,241

Financial assets
Loans and receivables:

Financial liabilities
Financial liabilities held at amortized cost:

The fair values of the financial assets and financial liabilities included in Level 2 category
above have been determined in accordance with generally accepted pricing models based on
a discounted cash flow analysis, with the most significant inputs being the discount rate that
reflects the credit risk of counterparties. As discount rate, the Bank has used weighted average
interest rate on corporate deposits,for whole banking market in BiH.

Annual Report 2013

29.

117

OFF-BALANCE SHEET ITEMS

The Bank maintains certain accounts in foreign currencies related to agreements concluded
between the governments of Bosnia and Herzegovina and foreign governments and financial
organizations. As these accounts do not represent either assets or liabilities of the Central Bank
of Bosnia and Herzegovina, they have not been included within the Banks balance sheet.
Off-balance sheet items also include foreign currency accounts of the state institutions and
agencies, as well as of commercial banks, for which the Bank acts as an agent.

Off-balance sheet items consist of:

In thousands of KM

31 December 2013

31 December 2012

433,436

387,650

20,196

19,872

20,196

19,872

121,314

108,670

Deposits of the Council of Ministers of BH


on the basis of succession

360

360

Deposits of the Council of Ministers of BH


regarding the servicing of foreign debt

5,453

5,051

Deposits of the Council of Ministers of BH


regarding the Budget of BiH Institutions

105,822

84,583

Other deposits of the Council of Ministers


of BH

9,679

18,676

7,713

5,785

828

731

4,080

4,077

431

2,374

977

129,027

114,455

Investments related to securities Deposit


Insurance Agency

284,213

253,323

Investments of residents related to securities

284,213

253,323

433,436

387,650

Third party securities and funds held with foreign


banks
Deposits of USAID
Deposits of non-residents
Deposits of the Council of Ministers of BH

Deposits of other residents


Deposits - Deposit Insurance Agency
Deposits - Banking Agency of Federation BH
Deposits - Retirement allowance from
Germany
Deposit accounts of banks
Deposits of residents

Liability for third party securities and funds

118

Central Bank of Bosnia and Herzegovina

USAID Deposits
On the basis of the Agreement regarding financial assistance between Bosnia and Herzegovina
and the United States of America for the financing of the reconstruction, special interest
bearing accounts have been opened with the Bank of America. The Bank does not charge and
does not collect any interest or fees on these accounts.
Residents investments related to securities
The Bank enabled the Deposit Insurance Agency of the Bosnia and Herzegovina to invest in
securities by opening cash and custodian accounts in the name of the Bank and the Deposit
Insurance Agency of the Bosnia and Herzegovina. All transactions on the accounts are
performed between the Deposit Insurance Agency of the Bosnia and Herzegovina and the
Asset Manager. The Bank does not charge any interest or fees on such accounts.
Bosnia and Herzegovina membership in the IMF
As depositary for BiH membership in the IMF, the Central Bank of Bosnia and Herzegovina
maintains the IMF No. 1 and 2 accounts and provides a custodian service for the BiH Promissory
Notes issued to support IMF membership and repurchase obligations. The Bank holds SDRs
as part of its foreign exchange reserve management function. As fiscal agent, the Bank acts on
behalf of the BiH in dealing with the IMF but does not have any responsibility for assets and
liabilities related to the membership.
The following consolidated position provides a summary of the BiH position with the IMF:
Consolidated position of BiH membership in the IMF as at 31 December 2013
(KM000)

Assets
Quota
SDR holdings
Accrued interest on SDR holdings
Total assets


369,532
2,727
1
372,260

Liabilities

IMF No. 1 account

929

IMF No. 2 account

32

Securities

1,220,275

Accounts of payable charges

1,624

SDR allocation

351,583

Accrued interest on SDR allocation

61

Total liabilities

1,574,504

Net member position with the IMF


BiH obligations to the IMF arising principally
from repurchase and currency valuation adjustments
Net member position

1,202,244
1,202,244
1,574,504

1,574,504

Annual Report 2013

119

1,574,504

1,574,504

IMF No. 1 account

(929)

(929)

IMF No. 2 account

(32)

(32)

1,573,543

1,573,543

Total consolidated position - assets and liabilities

Total gross position of BiH with the IMF - assets and liabilities

SDR holdings, accrued interest on SDR holdings, IMF No. 1 account and IMF No. 2 account
reflect accounts held on the balance sheet of the Bank.
For the consolidated position of Bosnia and Herzegovina with the IMF, the gross position of
the BiH is increased by the IMF No. 1 and 2 accounts.

Consolidated position of BiH membership in the IMF as at 31 December 2012


(KM000)

Assets
Quota
SDR holdings
Accrued interest on SDR holdings
Total assets


385,576
4,525
390,101

Liabilities

IMF No. 1 account

969

IMF No. 2 account

33

Securities

1,334,947

Accounts of payable charges

1,524

SDR allocation

366,847

Accrued interest on SDR allocation

42

Total liabilities

1,704,362

Net member position with the IMF


BiH obligations to the IMF arising principally
from repurchase and currency valuation adjustments

1,314,261

Net member position

1,314,261
1,704,362

1,704,362

1,704,362

1,704,362

IMF No. 1 account

(969)

(969)

IMF No. 2 account

(33)

(33)

1,703,360

1,703,360

Total consolidated position - assets and liabilities

Total gross position of BH with the IMF - assets and


liabilities

120

30.

Central Bank of Bosnia and Herzegovina

CURRENCY BOARD ARRANGEMENT

The Law on the Central Bank of Bosnia and Herzegovina requires that the aggregate amount of
its monetary liabilities shall at no time exceed its net foreign exchange reserves.
Details of compliance with the rule are as follows:

In thousands of KM
Foreign assets
Liabilities to non-residents

31 December
2013

31 December
2012

7,068,339

6,508,569

1,029

1,156

Net foreign exchange reserves (foreign assets minus


liabilities to non-residents)

7,067,310

6,507,413

Monetary liabilities

6,659,199

5,987,004

408,111

520,409

Net foreign assets (net foreign exchange reserves minus


monetary liabilities)

The monetary liabilities of the Bank, according to the Law on the Central Bank of Bosnia and
Herzegovina, consist of currency in circulation and the domestic deposits from banks and
other residents.

31.

DOMESTIC PAYMENT AND SETTLEMENT SYSTEM

Pursuant to the law on the Central Bank of Bosnia and Herzegovina the Bank is responsible for the establishment and maintenance of domestic payment and settlement systems. The
Bank has established two settlement systems from January 2001 in order to facilitate efficient
settlement of domestic interbank payment transactions: Real Time Gross Settlement System
(RTGS) and Giro Clearing System (GCS).
Credit risk
RTGS enables participants, i.e. the Bank and licensed commercial banks, to effect individual
and prompt settlement of one by one (gross) payments by crediting and debiting settlement
accounts held with the Central Bank in domestic currency. Through GCS the Bank provides
clearing services arising from transmitted payment orders in accordance with the principle of
multilateral clearing.
Each participant in the payment systems is obliged to cover its settlement account held with
the Bank prior to settlement of payment orders and must meet certain technical requirements.
Pursuant to the role of the Bank as defined by the Law on the Central Bank of Bosnia and Herzegovina, the Bank does not provide any credit to RTGS and GCS participants which would
provide liquidity to the system in any form.

Annual Report 2013

121

Operational risk
With the aim of minimising operational risk within the domestic payment and settlement
system, operating rules for RTGS and GCS have been issued, which define minimum security
standards for operation of the systems.
Relevant security objectives, policies and procedures aim to ensure security measures and
features. The computer systems and the networks are operated according to established
objectives and policies. The security objectives and policies are reviewed periodically. Each
direct participant is also required to have appropriate security measures and controls for
processing payments.
The Bank has defined the following Contingency Settlement Procedures:
Contingency plans and measures: the Bank has defined contingency measures in order
to ensure continuity of reliable, correct and lawful operation of the payment and settlement
systems in the event of disruption to the regular payment and settlement system, or other
contingency events;
Backup locations: the Bank has set up primary and backup location, as well as DR (Disaster
Recovery) location located in Main Bank of Republika Srpska of the Central Bank of Bosnia
and Herzegovina in Banja Luka. All locations are capable of operating under contingency
measures, whose appropriateness and effectiveness has been regularly tested.
Management of the Bank believes that the system has sufficient capacity to maintain operational
reliability, which has never been jeopardised since the implementation of the system.

122

Central Bank of Bosnia and Herzegovina

Annual Report 2013

Publications and
Web Services

123

IV

124

Central Bank of Bosnia and Herzegovina

Annual Report 2013

125

Monthly Economic Survey

A brief information on the latest trends in macroeconomic


environment which has been published on the CBBH web site
since May 2013. Publication was internal by that time.

Bulletin

Quarterly publication, includes monetary and financial statistics,


information on payment transactions, data on real sector and
balance of payments of Bosnia and Herzegovina.

Annual Report

Financial Stability Report


Special Research Topics

WEB SERVICES

WEB SITE
www.cbbh.ba
e-mail:
contact@cbbh.ba
pr@cbbh.ba

TWITTER@CBBiH

The publication contains the report on business operations of


the CBBH during the year and the financial statement, which the
CBBH submits to the Presidency of BH and the Parliamentary
Assembly of Bosnia and Herzegovina.
Annual publication contains assessment of risks arising from
macroeconomic environment and the trends in the financial
system, and assessment of the system resistance to identified
risks.
Occasional publication published on the CBBH web site.
The CBBH considers transparency and disclosure of business
operations to be very important for credibility, public
accountability and trust that the CBBH enjoys among the
population and in BH institutions as well as among international
institutions. On the basis of the CBBH Rule Book on Operations,
the CBBH is required to inform the public about its operations
by providing timely information, publishing reports, issuing
official publications, organizing press conferences.
Web site of the CBBH has existed since 1998. It contains the
basic data on the CBBH, the CBBH Law, presents the banknotes
and coins of Bosnia and Herzegovina and numismatic issues
of the CBBH, and also a high number of publications and
statistical data (annual reports, monthly balance sheets, quarterly
bulletins, financial stability report, BH balance of payments,
payment system....) and the list of all commercial banks in BH.
Publications and statistics are published in generally accepted
formats, DOC, XLS and PDF. The site also includes the
exchange rate list, which is changed on daily basis and other
relevant news and press releases.
Documents are published in Bosnian, Croatian, Serbian and
English.
In 2013, with purpose of increasing openness and transparency,
and communicating with wider public, the CBBH has created
its official profile on the social network Twitter.
Via that profile, the data, also published on the web site of
the bank www.cbbh.ba are republished, with the additional
information and data which are estimated to be relevant.
The way of communicating is adjusted to the target public.

126

Central Bank of Bosnia and Herzegovina

127

STATISTICAL TABLES

128

Central Bank of Bosnia and Herzegovina

Annual Report 2013

129

5. Statistical Tables
T01: Main Economic Indicators
T02: BH Gross Domestic Product
T03: Industrial Output Index
T04: Consumer Price Index for BH (CPI)
T05: Average Gross and Net Wages and Pensions
T06: Monetary Aggregates
T07: Monetary Survey
T08: CBBH Balance Sheet
T09: Consolidated Balance Sheet of Commercial Banks in BH
T10a: Interest Rates on Loans to Households
T10b: Interest Rates on Loans to Non-financial Corporations
T10c: Interest Rates on Deposits of Households and Non-financial Corporations
T11: Total Deposits and Loans of Commercial Banks
T12: Structure of Transferable Deposits by Sectors in Commercial Banks
T13: Structure of Other Deposits by Sectors in Commercial Banks
T14: Structure of Short -Term Loans by Sectors of Commercial Banks
T15: Structure of Long -Term Loans by Sectors of Commercial Banks
T16: KM Buying and Selling
T17: Average Required Reserves
T18: Payments System Transactions
T19: BH Balance of Payments
T20: Balance of Payments - Current Account and Capital Account
T21: Balance of Payments - Financial Account
T22: Government Sector Foreign Debt Servicing
T23: Foreign Debt of BH General Government by Creditors
T24: CBBH Foreign Reserves
T25: Foreign Trade
T26: BH Exports by Country of Destination
T27: BH Imports by Country of Origin
T28: Composition of Goods Exports and Imports by Products
T29: Average Exchange Rates of Convertible Mark
T30: BH Government Finances - Government Sector Units
T31: BH Government Finances - Structure of Consolidated Revenues and Expenditures
T32: FBH Government Finances - Government Sector Units
T33: RS Government Finances - Government Sector Units
T34: Foreign Direct Investment Flows to BH, Classified by Country of Foreign Investor
T35: Foreign Direct Investment Flows to BH, Classified by Industry
T36: International Investment Position
T37: Nominal and Real Effective Exchange Rate of Convertible Mark

130

Central Bank of Bosnia and Herzegovina

Annual Report 2013

131

T01: Main Economic Indicators

BH Nominal GDP (in KM million)1) current prices

2007

2008

2009

2010

2011

2012

2013*

22,065

24,984

24,307

24,879

25,772

25,734

26,1232)

6.0

5.6

-2.7

0.8

1.0

-1.2

1.6

Real GDP annual growth (in %)1)


Consumer prices growth rate in BH3)

in percentage

Average annual growth rate of CPI

1.5

7.4

-0.4

2.1

3.7

2.1

-0.1

Annual growth rate of CPI for December

4.9

3.8

0.0

3.1

3.1

1.8

-1.2

44.6

43.6

42.5

43.7

44.1

44.5

43.4

45.8

47.0

46.1

45.3

46.6

1.2

-2.2

-4.4

-2.5

-1.3

-2.0

General government budget4)

as percentage of GDP

Revenues
Expenditures

5)

Overall balance
Money and credit

as percentage of GDP

Broad money (M2)6)

54.2

49.8

52.3

54.8

55.9

57.9

61.6

Credit to non-government sector

53.1

57.0

56.4

56.7

57.0

58.7

59.4

In KM million

6,699

6,296

6,212

6,458

6,424

6,509

7,068

In USD million

4,686

4,710

4,416

4,372

4,568

4,274

4,797

6.5

5.1

6.3

6.1

5.4

5.5

6.1

In KM million

-1,993

-3,510

-1,587

-1,528

-2,511

-2,383

-1,435

In USD million

-1,411

-2,639

-1,135

-1,028

-1,789

-1,563

-976

-9.0

-14.1

-6.5

-6.1

-9.7

-9.3

-5.5

In KM million

-8,935

-10,665

-7,786

-7,629

-8,346

-8,445

-7,802

In USD million

-6,283

-8,017

-5,549

-5,160

-5,941

-5,541

-5,301

-40.5

-42.7

-32.0

-30.7

-32.4

-32.8

-29.9

In KM million

3,961

4,240

5,234

6,289

6,661

7,155

7,405

In USD million

2,976

3,057

3,837

4,270

4,407

4,823

5,218

18.0

17.0

21.5

25.3

25.8

27.8

28.3

In KM million

239

230

246

301

340

413

685

In USD million

167

172

175

204

242

271

465

As a percentage of exports of goods and services

4.1

3.5

4.1

4.2

4.2

5.2

8.1

Balance of payments
Gross official reserves

In months of imports of goods and services


Current account balance

7)

As a percentage of GDP
Trade balance

As a percentage of GDP
External debt of govermment sector

As a percentage of GDP
External debt servicing8)

Note:
1) Source: Agency for Statistics of BH, Gross domestic product by production and income approach 2005-2012 February 2014.
2) Estimates of the Central Bank of Bosnia and Herzegovina, preliminary data (production approach), until the official GDP statistics is published by the BH
Agency of Statistics.
3) Source:BH Agency of Statistics
4) Source: Central Bank of BH
5) Expenditures also include net acquisition of fixed assets.
6) Monetary data from January 2006 updated in line with new methodology.
7)The BH Balance of Payments was prepared in accordance with the IMF methodology (Balance of Payments Manual, 6th edition).
8) Source: BH Ministry of Finance and Treasury.
* Preliminary data for 2013.

132

Central Bank of Bosnia and Herzegovina

T02: BH Gross Domestic Product (Current Prices)


2007

2008

2009

2010

2011

2012

2013*

Nominal GDP (in KM million)

22,065

24,984

24,307

24,879

25,772

25,734

26,123

Nominal GDP (in USD million)

15,435

18,692

17,279

16,845

18,329

16,901

17,728

GDP per capita (in KM)

5,743

6,503

6,325

6,474

6,712

6,709

6,889

GDP per capita (in USD)

4,017

4,865

4,496

4,383

4,773

4,406

4,675

Real GDP annual growth (in %)


Population (in thousands)
Annual average exchange rate of BAM/USD

6.0

5.6

-2.7

0.8

1.0

-1.2

1.6

3,842

3,842

3,843

3,843

3,840

3,836

3,792**

1.429542

1.336615

1.406763

1.476950

1.406117

1.522668

1.473557

Source:
Agency for Statistics of BH, Gross domestic product by production and income approach 2005-2012 February 2014, except the data on annual average BAM/
USD exchange rate, provided by the CBBH.
* CBBH estimates.
** Agency for Statistics of BH, data bases, Census 2013 - preliminary results.

Annual Report 2013

133

T03: Industrial Output Index

Year

Month

Month/same month of the previous year


FBH

RS

Period/same period of the previous year


BH

FBH

RS

BH

1998

12.

115.4

115.5

123.8

123.0

1999

12.

109.1

92.7

110.6

101.6

2000

12.

105.7

103.5

108.8

105.6

2001

12.

107.4

74.6

112.2

87.1

2002

12.

113.9

119.4

109.2

97.5

2003

12.

107.8

100.9

104.8

105.7

2004

12.

109.0

113.9

113.2

109.7

2005

12.

105.1

112.9

106.1

119.8

2006

12.

106.7

128.5

110.4

119.1

2007

12.

98.4

102.0

108.6

101.4

106.6

2008

12.

109.4

199.6

107.9

116.8

107.3

2009

12.

90.1

121.0

95.5

88.4

119.0

96.7

2010

12.

112.7

114.1

108.7

104.2

105.0

101.6

2011

12.

93.6

93.9

100.4

102.5

104.7

105.6

2012

12.

99.6

98.5

95.2

95.7

95.8

94.8

2013

12.

107.7

104.7

107.0

107.4

104.1

106.4

2013

01.

103.3

97.5

102.0

103.3

97.5

102.0

02.

114.1

105.3

111.1

108.4

101.2

106.3

03.

111.3

96.6

106.8

109.4

99.8

106.5

04.

110.7

111.7

111.4

109.8

102.9

107.8

05.

107.0

103.5

106.1

109.2

103.0

107.4

06.

103.4

103.2

103.7

108.2

103

106.7

07.

100.1

122.3

106.8

107.0

105.8

106.7

08.

102.1

105.0

103.6

106.3

105.5

106.3

09.

108.1

95.8

104.4

106.1

104.4

105.5

10.

111.0

100.7

107.9

107

104.0

106.0

11.

111.0

104.4

108.9

107.4

103.1

106.3

12.

107.7

104.7

107.0

107.4

104.1

106.4

Source:
BH Agency for Statistics, Federal Office of Statistics and RS Institute of Statistics.
Note:
Industrial Output Index for a period / the same period of the previous year for December represents a yearly index in comparison with the previous year.

134

Central Bank of Bosnia and Herzegovina

T04: Consumer Price Index for BH (CPI)


Month/same month of the previous
year

Period/same period of the previous


year

121.2

113.3

12.

103.3

103.7

12.

107.5

104.8

2001

12.

100.9

103.1

2002

12.

100.2

100.4

2003

12.

100.6

100.6

2004

12.

100.5

100.4

2005

12.

104.3

103.8

2006

12.

104.6

106.1

2007

12.

104.9

101.5

2008

12.

103.8

107.4

2009

12.

100.0

99.6

Year

Month

1998

12.

1999
2000

Month/previous month of the


current year

2010

12.

103.1

102.1

2011

12.

103.1

103.7

2012

12.

101.8

102.1

2013

12.

98.8

99.9

2013

01.

101.3

101.3

02.

101.0

101.0

03.

100.6

100.8

04.

100.4

100.6

05.

100.4

100.5

06.

101

100.6

07.

100.8

100.6

08.

99.8

100.5

09.

99.5

100.3

10.

99.1

100.2

11.

99.1

100.0

12.

98.8

99.9

Source:
BH Agency for Statistics since 2006, but until 2006 Federal Office of Statistics and RS Institute of Statistics.
Note:
The Retail Price Index for BH is presented until 2006, and it is calculated as a weighted average of entities monthly prices indices, where the weights are
equivalent to entities share in BH GDP (note T01).
For 2006 and the following periods, the table presents The Consumer Price Index (CPI).
The price index for a period/the same period of the previous year for December represents a yearly index in comparison with the previous year.

Annual Report 2013

135

T05: Average Gross and Net Wages and Pensions


- in KM Year

Gross wages

Month

FBH

1998

507

RS
258

Net wages

Brko

BH
454

FBH
329

RS
172

Pensions

Brko

BH
296

FBH
153

RS

Brko

1999

551

314

503

374

216

343

174

87

2000

607

387

539

413

277

372

176

115

2001

652

444

792

598

443.3

309

504

409

170

105

2002

710

528

1,031

660

483

347

676

446

189

120

138

2003

771

576

1,057

717

524

379

695

484

192

133

148

2004

785

643

1,076

748

533

423

707

505

203

166

169

2005

820

707

1,050

798

558

465

676

538

221

190

188

2006

887

793

1,048

869

603

521

674

586

238

215

208

2007

974

875

1,088

935

662

585

684

645

284

230

243

2008

1,105

1,132

1,139

1,113

751

755

730

752

340

309

310

2009

1,204

1,204

1,194

1,204

792

788

769

790

346

335

326

2010

1,223

1,199

1,234

1,217

804

784

797

798

341

321

316

2011

1,248

1,326

1,262

1,271

819

809

800

816

349

321

319

2012

1,266

1,349

1,271

1,290

830

818

819

826

351

312

311

2013

1,275

1,333

1,266

1,291

835

808

817

827

348

318

310

1,277

1 338

1,284

1,294

836

811

824

829

350

315

310

2013

01.
02.

1,246

1 338

1,257

1,272

817

811

810

815

351

315

309

03.

1,263

1 318

1,245

1,278

828

799

815

819

350

311

310

04.

1,276

1,316

1,259

1,287

836

798

815

824

350

315

309

05.

1,292

1,314

1,272

1,298

846

796

821

832

350

314

309

06.

1,258

1,344

1,270

1,283

825

816

820

822

350

315

309

07.

1,285

1,323

1,260

1,295

841

803

815

830

349

314

309

08.

1,275

1,337

1,260

1,293

835

811

815

828

346

314

308

09.

1,270

1,340

1,256

1,290

832

813

806

826

346

326

313

10.

1290

1,334

1,262

1,302

845

808

811

833

346

325

313

11.

1,276

1,340

1,282

1,295

836

811

827

828

346

325

313

12.

1,291

1,351

1,284

1,309

845

820

831

838

346

325

313

Source:
BH Agency for Statistics, Federal Office of Statistics and RS Institute of Statistics.
Note:
Since 1 January 2006, gross and net salaries for BH level include the Brko District.

136

Central Bank of Bosnia and Herzegovina

Transf. deposits in
domestic currency

Other deposits in
domestic currency

Transf. deposits in
foreign currency

Other deposits in
foreign currency

10

213.0

0.0

112.5

139.2

9.6

553.7

363.3

327.6

251.7

926.5

1,178.2

1998

12.

167.5

181.7

0.0

162.5

147.5

8.0

762.1

467.0

349.1

310.0

1,237.0

1,547.0

1999

12.

538.4

289.2

0.0

515.3

584.6

22.4

465.5

577.3

827.6

1,099.9

1,065.1

2,165.0

2000

12.

695.9

261.9

0.1

651.7

750.0

77.9

559.5

428.2

957.9

1,401.7

1,065.6

2,467.3

2001

12.

1,806.0

734.7

2.2

1,673.9

1,018.4

140.9

928.5

907.7

2,542.9

2,692.3

1,977.0

4,669.3

2002

12.

1,868.7

446.9

2.9

1,734.4

1,273.3

272.2

817.1

974.4

2,318.5

3,007.6

2,063.7

5,071.3

2003

12.

1,721.9

885.4

1.9

1,601.3

1,512.1

461.9

818.3

1,102.5

2,609.1

3,113.4

2,382.7

5,496.1

2004

12.

1,817.4

1,421.4

2.0

1,670.6

1,864.9

703.4

988.1

1,604.6

3,240.8

3,535.4

3,296.1

6,831.6

2005

12.

1,907.2

2,062.1

3.1

1,729.1

2,373.6

818.1

1,154.8

1,999.4

3,972.4

4,102.8

3,972.3

8,075.1

2006

12.

2,154.2

2,891.9

10.5

1,978.3

2,761.4

1,365.4

692.0

3,105.4

5,056.6

4,739.8

5,162.8

9,902.6

2007

12.

2,439.7

3,777.1

12.2

2,185.3

3,546.6

1,726.5

834.5

3,661.1

6,229.0

5,731.9

6,222.0

11,953.9

2008

12.

2,552.4

3,144.2

7.4

2,302.4

3,388.8

1,776.2

1,108.0

3,864.7

5,704.0

5,691.2

6,748.8

12,440.0

2009

12.

2,267.7

3,375.1

6.0

2,009.5

3,536.3

1,844.3

1,078.7

4,241.0

5,648.9

5,545.8

7,164.0

12,709.8

2010

12.

2,497.5

3,393.5

8.7

2,210.8

3,689.2

1,991.0

1,210.6

4,526.4

5,899.7

5,900.0

7,727.9

13,627.9

2011

12.

2,645.1

3,192.8

11.1

2,366.4

3,819.0

2,285.7

1,100.1

4,846.9

5,848.9

6,185.5

8,232.7

14,418.1

2012

12.

2,747.5

3,040.6

13.5

2,414.3

3,728.4

2,672.7

1,053.0

5,042.2

5,801.7

6,142.7

8,767.8

14,910.5

2013

12.

2,909.9

3,475.3

15.9

2,542.3

4,153.3

3,006.3

1,189.3

5,203.1

6,401.0

6,695.6

9,398.7

16,094.3

2013

01.

2,658.7

3,053.1

13.6

2,337.4

3,735.9

2,667.3

1,081.0

5,038.3

5,725.5

6,073.3

8,786.7

14,859.9

02.

2,675.8

3,062.3

12.3

2,358.2

3,722.2

2,681.3

1,071.0

5,029.8

5,750.4

6,080.4

8,782.1

14,862.6

03.

2,696.0

2,933.0

12.2

2,403.2

3,839.2

2,715.7

1,061.7

5,107.1

5,641.2

6,242.4

8,884.4

15,126.9

04.

2,752.7

2,953.3

13.8

2,424.0

3,836.8

2,754.5

1,047.2

5,099.6

5,719.8

6,260.8

8,901.3

15,162.1

05.

2,728.3

3,016.8

13.8

2,408.4

3,863.6

2,806.9

1,070.8

5,081.1

5,758.9

6,272.1

8,958.9

15,230.9

06.

2,765.8

2,982.5

13.8

2,441.2

3,817.4

2,776.7

1,156.8

5,042.7

5,762.1

6,258.6

8,976.2

15,234.9

07.

2,839.7

3,138.6

13.9

2,501.8

3,951.4

2,761.6

1,116.2

5,040.3

5,992.1

6,453.2

8,918.1

15,371.3

08.

2,888.1

3,352.5

13.7

2,550.7

4,131.3

2,809.9

1,110.5

5,082.6

6,254.3

6,682.0

9,003.1

15,685.0

09.

2,870.7

3,388.6

13.8

2,506.8

4,124.4

2,888.1

1,133.3

5,081.1

6,273.1

6,631.2

9,102.5

15,733.7

11=3+4+5 12=6+7

M2

Currency outside banks

114.6

QM

Transf. dep. of other


resident sectors with
monetary authorities

M1

Banks deposits with


monetary authorities

2
12.

Reserve money

Currency outside
monetary authorities

1
1997

Year

Month

T06: Monetary Aggregates


- end of period, in KM million -

13=8+9+10 14= 12+13

10.

2,862.2

3,372.8

14.6

2,504.0

4,071.9

2,931.7

1,168.8

5,133.1

6,249.5

6,575.9

9,233.7

15,809.6

11.

2,855.7

3,376.4

13.9

2,493.8

4,051.2

2,965.4

1,170.1

5,146.9

6,246.0

6,545.0

9,282.3

15,827.3

12.

2,909.9

3,475.3

15.9

2,542.3

4,153.3

3,006.3

1,189.3

5,203.1

6,401.0

6,695.6

9,398.7

16,094.3

Monetary data are updated based on the new methodology from January 2006.
See note on page 173.
Note:
Cash outside monetary authorities is obtained from the CBBH Balance Sheet and it represents the currency in circulation outside the central bank (monetary
authorities). Deposits of commercial banks are commercial banks assets in accounts at the CBBH. Transferable deposits of other domestic sectors with monetary
authorities are deposits of other domestic sectors (except the central government deposits). The central government includes the BH Institutions, entity
governments, entity social security funds and the Brko Distrikt. Social security funds on entity level (from the Federation of BH: FBH Pension Fund, FBH Health
Fund, FBH Unemployment Fund, and from Republika Srpska: RS Pension Fund, RS Health Care Fund, RS Unemployment Fund and RS Child Care Fund) are
classified on the central government level. Cash outside banks is obtained from the CBBH Balance Sheet (Table 8) and consists of currency in circulation that is
outside the Central Bank as well as commercial banks. Transferable deposits in domestic currency are obtained from the Monetary Survey (Table 7). They include
deposits of non central government (cantons and municipalities), deposits of public and private enterprises, other financial institutions and deposits of other
domestic sectors (households, nonprofit institutions and other nonclassified domestic sectors). Other deposits in the domestic currency, transferable and other
deposits in foreign currency are obtained from the Monetary Survey (Table 7). They consist of deposits of non-central government, deposits of public and private
enterprises, other financial institutions and deposits of other domestic sectors. Reserve money (primary money or monetary base) is carried over in full from the
CBBH Balance Sheet (Table 8). It consists of cash outside monetary authorities, deposits of commercial banks and deposits of other domestic sectors (except for
deposits of the central government) with monetary authorities. According to the national deffinition, broad money includes all transferable and other deposits
of domestic non-bank and non-government sectors, as well deposits of the local government sector in domestic and foreign currency. Deposits of entity social
security funds are included into the central government on entity level and are consequently excluded from broad money or monetary aggregates. Monetary
aggregate M1 comprises cash outside banks and transferable deposits in domestic currency of all domestic sectors (except for deposits of the central government).
Monetary aggregate QM (quasi money) is defined as the corresponding item in the Monetary Survey (Table 7). It consists of other deposits in domestic currency,
transferable and other deposits in foreign currency of all domestic sectors (except for deposits of the central government). Money supply M2 comprises monetary
aggregates, M1 and QM.

Annual Report 2013

137

T07: Monetary Survey


- end of period, in KM million ASSETS

10

11

Total

Claims on other resident


sectors

5 = 3+4

Claims on other
financial corporations

Claims on private nonfinancial enterprises

Foreign liabilities

Claims on public nonfinancial enterprises

Foreign assets

Claims on non-central
government

Month

Domestic credit

Claims on central
government (net)

Year

Foreign assets (net)

12 =
13 = 5+12
6+...+11

1997

12.

1,157.8

-1,658.3

-500.5

-187.9

4.8

1,243.6

1,034.8

8.3

163.6

2,267.2

1,766.7

1998

12.

1,170.5

-1,605.8

-435.4

-180.9

8.6

1,100.0

1,314.3

5.4

388.0

2,635.4

2,200.0

1999

12.

1,715.5

-1,519.4

196.1

-159.1

16.6

1,003.2

1,449.4

6.3

285.5

2,601.9

2,798.1

2000

12.

1,988.3

-1,577.3

411.0

-129.0

9.3

1,673.1

874.9

10.9

424.2

2,863.4

3,274.4

2001

12.

4,098.9

-1,556.5

2,542.5

-318.7

25.4

1,430.8

1,142.8

20.0

712.6

3,012.8

5,555.2

2002

12.

3,980.5

-1,794.8

2,185.7

-385.1

28.7

1,254.7

1,442.2

27.8

1,495.8

3,864.1

6,049.8

2003

12.

4,382.6

-2,438.0

1,944.6

-467.5

21.5

1,166.7

1,859.6

40.2

2,010.3

4,630.7

6,575.3

2004

12.

5,412.8

-2,652.1

2,760.8

-443.0

24.7

691.7

2,478.2

60.1

2,652.9

5,464.6

8,225.4

2005

12.

6,348.9

-3,560.3

2,788.6

-552.5

31.5

695.0

3,244.0

67.9

3,488.8

6,974.6

9,763.2

2006

12.

7,836.7

-4,075.8

3,760.8

-971.4

62.3

634.4

4,086.1

89.4

4,450.8

8,351.6

12,112.4

2007

12.

10,285.0

-5,166.6

5,118.4

-2,377.8

96.1

626.7

5,315.7

159.6

5,793.5

9,613.8

14,732.2

2008

12.

9,429.7

-6,362.9

3,066.8

-1,655.2

148.3

629.2

6,751.6

169.2

6,804.5

12,847.5

15,914.3

2009

12.

9,430.9

-5,744.9

3,685.9

-1,294.1

195.6

636.1

6,682.5

103.0

6,411.3

12,734.3

16,420.2

2010

12.

9,300.8

-4,784.6

4,516.3

-996.4

270.8

749.1

6,965.5

80.2

6,424.3

13,493.6

18,009.8

2011

12.

9,175.9

-4,177.9

4,997.9

-439.7

323.1

768.8

7,166.9

94.0

6,770.1

14,683.2

19,681.1

2012

12.

9,044.2

-3,948.2

5,096.0

-182.1

386.3

789.6

7,473.1

73.7

6,874.4

15,415.0

20,511.0

2013

12.

9,733.5

-3,698.9

6,034.6

-18.5

422.5

829.6

7,556.4

67.4

7,139.3

15,996.8

22,031.4

2013

01.

8,715.4

-3,692.4

5,022.9

-60.8

392.9

789.9

7,439.5

68.2

6,827.4

15,457.1

20,480.1

02.

8,812.8

-3,720.8

5,092.0

-53.5

389.3

785.2

7,492.7

68.7

6,826.9

15,509.3

20,601.3

03.

8,874.7

-3,677.6

5,197.1

-3.9

390.9

834.9

7,488.4

81.5

6,866.4

15,658.2

20,855.3

04.

8,779.5

-3,686.1

5,093.3

51.2

390.8

850.6

7,538.7

83.9

6,882.5

15,797.8

20,891.1

05.

8,830.6

-3,684.2

5,146.4

-5.9

389.1

854.0

7,557.6

87.5

6,906.4

15,788.8

20,935.2

06.

8,938.0

-3,666.3

5,271.7

-122.3

391.1

844.4

7,490.2

90.4

6,947.3

15,641.1

20,912.8

07.

9,137.5

-3,712.5

5,424.9

-57.7

384.6

835.9

7,465.8

82.4

6,996.9

15,707.8

21,132.8

08.

9,377.9

-3,678.1

5,699.8

3.1

401.8

832.0

7,456.2

68.2

7,014.0

15,775.3

21,475.1

09.

9,339.7

-3,596.0

5,743.7

0.9

399.4

821.4

7,470.9

69.1

7,060.5

15,822.2

21,566.0

10.

9,460.8

-3,603.3

5,857.4

-47.6

403.8

816.2

7,472.1

66.9

7,091.7

15,803.1

21,660.6

11.

9,380.4

-3,533.1

5,847.3

-24.9

407.4

813.0

7,519.4

70.6

7,114.8

15,900.2

21,747.5

12.

9,733.5

-3,698.9

6,034.6

-18.5

422.5

829.6

7,556.4

67.4

7,139.3

15,996.8

22,031.4

Monetary data are updated based on the new methodology from January 2006.
See note on page 173.
Note:
The Monetary Survey presents the consolidated data from the Balance Sheet of CBBH - monetary authorities (Table 8) and the Consolidated Balance Sheet of
commercial banks of Bosnia and Herzegovina (Table 9). Foreign assets (net) represent the difference between total foreign assets and total foreign liabilities of
monetary authorities and commercial banks. Domestic credit represents commercial banks claims on all domestic sectors, but it should be noted that claims
on the central government are presented in net amounts, i.e. they are reduced by the value of the deposits of the central government with the CBBH and with
BH commercial banks. The central government consists ofBH Institutions, entity social security funds and Brko Distrikt. According to the new methodology,
social security funds are classified on the central government level as entity extrabudgetary funds, which directly impacts the data on net claims by the central
government in the Monetary Survey.

138

Central Bank of Bosnia and Herzegovina

T07: Monetary Survey


- end of period, in KM million LIABILITIES
Broad money (M2)

9=6+7+8

10=5+9

Total

Other items
(net)

Shares and
other equity

5=3+4

Loans

Securities other
than shares

Transferable
deposits in
dom. curr.

Other deposits
in foreign curr.

Currency
outside banks

Other deposits
in dom. curr.

Month

Quasi money (QM)


Transferable
deposits in
foreign curr.

Year

Money (M1)

11

12

13

14

15=10+...+14

1997

12.

112.5

139.2

251.7

553.7

9.6

363.3

926.5

1,178.2

14.2

0.0

0.0

574.4

1,766.7

1998

12.

162.5

147.5

310.0

762.1

8.0

467.0

1,237.0

1,547.0

10.6

0.0

0.0

642.5

2,200.0

1999

12.

515.3

584.6

1,099.9

465.5

22.4

577.3

1,065.1

2,165.0

8.7

0.0

0.0

624.3

2,798.1

2000

12.

651.7

750.0

1,401.7

559.5

77.9

428.2

1,065.6

2,467.3

4.4

0.0

0.0

802.7

3,274.4

2001

12.

1,673.9

1,018.4

2,692.3

928.5

140.9

907.7

1,977.0

4,669.3

0.1

0.0

0.0

885.8

5,555.2

2002

12.

1,734.4

1,273.3

3,007.6

817.1

272.2

974.4

2,063.7

5,071.3

0.1

0.0

0.0

978.5

6,049.8

2003

12.

1,601.3

1,512.1

3,113.4

818.3

461.9

1,102.5

2,382.7

5,496.1

0.0

0.0

0.0

1,079.1

6,575.3

2004

12.

1,670.6

1,864.9

3,535.4

988.1

703.4

1,604.6

3,296.1

6,831.6

0.0

0.0

0.0

1,393.8

8,225.4

2005

12.

1,729.1

2,373.6

4,102.8

1,154.8

818.1

1,999.4

3,972.3

8,075.1

0.0

0.0

0.0

1,688.1

9,763.2

2006

12.

1,978.3

2,761.4

4,739.8

692.0

1,365.4

3,105.4

5,162.8

9,902.6

0.0

114.0

1,908.9

187.0

12,112.4

2007

12.

2,185.3

3,546.6

5,731.9

834.5

1,726.5

3,661.1

6,222.0

11,953.9

5.2

106.1

2,366.0

300.9

14,732.2

2008

12.

2,302.4

3,388.8

5,691.2

1,108.0

1,776.2

3,864.7

6,748.8

12,440.0

17.9

264.3

2,785.2

407.0

15,914.3

2009

12.

2,009.5

3,536.3

5,545.8

1,078.7

1,844.3

4,241.0

7,164.0

12,709.8

13.6

446.7

2,835.6

414.5

16,420.2

2010

12.

2,210.8

3,689.2

5,900.0

1,210.6

1,991.0

4,526.4

7,727.9

13,627.9

9.1

595.1

3,055.8

721.9

18,009.8

2011

12.

2,366.4

3,819.0

6,185.5

1,100.1

2,285.7

4,846.9

8,232.7

14,418.1

0.0

675.3

3,606.4

981.3

19,681.1

2012

12.

2,414.3

3,728.4

6,142.7

1,053.0

2,672.7

5,042.2

8,767.8

14,910.5

0.0

712.4

3,780.4

1,107.8

20,511.0

2013

12.

2,542.3

4,153.3

6,695.6

1,189.3

3,006.3

5,203.1

9,398.7

16,094.3

0.0

707.9

3,828.9

1,400.3

22,031.4

2013

01.

2,337.4

3,735.9

6,073.3

1,081.0

2,667.3

5,038.3

8,786.7

14,859.9

0.0

709.4

3,799.1

1,111.7

20,480.1

02.

2,358.2

3,722.2

6,080.4

1,071.0

2,681.3

5,029.8

8,782.1

14,862.6

0.0

714.1

3,811.0

1,213.6

20,601.3

03.

2,403.2

3,839.2

6,242.4

1,061.7

2,715.7

5,107.1

8,884.4

15,126.9

0.0

714.4

3,844.1

1,169.9

20,855.3

04.

2,424.0

3,836.8

6,260.8

1,047.2

2,754.5

5,099.6

8,901.3

15,162.1

0.0

708.8

3,869.4

1,150.8

20,891.1

05.

2,408.4

3,863.6

6,272.1

1,070.8

2,806.9

5,081.1

8,958.9

15,230.9

0.0

710.4

3,858.4

1,135.4

20,935.2

06.

2,441.2

3,817.4

6,258.6

1,156.8

2,776.7

5,042.7

8,976.2

15,234.9

0.0

711.9

3,825.6

1,140.4

20,912.8

07.

2,501.8

3,951.4

6,453.2

1,116.2

2,761.6

5,040.3

8,918.1

15,371.3

0.0

710.3

3,877.8

1,173.3

21,132.8

08.

2,550.7

4,131.3

6,682.0

1,110.5

2,809.9

5,082.6

9,003.1

15,685.0

0.0

712.7

3,874.4

1,202.9

21,475.1

09.

2,506.8

4,124.4

6,631.2

1,133.3

2,888.1

5,081.1

9,102.5

15,733.7

0.0

713.7

3,841.9

1,276.6

21,566.0

10.

2,504.0

4,071.9

6,575.9

1,168.8

2,931.7

5,133.1

9,233.7

15,809.6

0.0

713.6

3,873.4

1,264.0

21,660.6

11.

2,493.8

4,051.2

6,545.0

1,170.1

2,965.4

5,146.9

9,282.3

15,827.3

0.0

719.9

3,914.1

1,286.1

21,747.5

12.

2,542.3

4,153.3

6,695.6

1,189.3

3,006.3

5,203.1

9,398.7

16,094.3

0.0

707.9

3,828.9

1,400.3

22,031.4

Monetary data are updated based on the new methodology from January 2006.
See note on page 173.
Note:
Money M1 includes cash outside banks, transferable deposits in domestic currency of all domestic sectors (except the deposits of the central government). Quasi
money QM includes other deposits in domestic currency, transferable and other deposits in foreign currency of all domestic sectors (except the deposits of the
central government). Money supply M2 includes monetary aggregates, money M1 and quasi money QM. Other liabilities include securities other than shares,
loans, shares and other equity and other items (net). According to the new methodology, loans are presented on the liability side as separate financial instruments
(with addition of accrued interest), as well as shares and other equity. Other items (net) are unallocated liability items after deduction of the unallocated asset
items. Other items (net) also include restricted deposits, fund counter entries and public lending funds.

Annual Report 2013

139

T08: CBBH Balance Sheet


- end of period, in KM million ASSETS

LIABILITIES

144.1

7
114.6

160.1

Total

5=3+4
0.0

Other items
(net)

Cash outside
monetary
authorities

4
144.1

Shares and
other equity

Total

Deposits
of central
government

Claims on
resident
sectors

2
12.

Foreign
liabilities

Foreign assets

1
1997

Year

Month

Reserve money

10

11

12=7+...+11

0.0

0.1

0.4

-16.6

144.1

1998

12.

283.3

0.0

283.3

167.5

246.5

0.0

7.3

29.5

-0.1

283.3

1999

12.

867.1

0.0

867.1

538.4

827.6

0.1

9.1

33.7

-3.3

867.1

2000

12.

1,027.7

0.0

1,027.7

695.9

957.9

0.2

10.3

58.5

0.7

1,027.7

2001

12.

2,735.0

0.2

2,735.1

1,806.0

2,542.9

30.0

48.7

121.5

-7.9

2,735.1

2002

12.

2,511.9

0.2

2,512.0

1,868.7

2,318.5

1.2

26.7

180.7

-15.1

2,512.0

2003

12.

2,820.7

1.0

2,821.7

1,721.9

2,609.1

1.0

18.6

214.7

-21.8

2,821.7

2004

12.

3,506.8

1.8

3,508.5

1,817.4

3,240.8

1.0

44.6

226.5

-4.3

3,508.5

2005

12.

4,252.3

1.9

4,254.3

1,907.2

3,972.4

1.0

37.7

245.0

-1.8

4,254.3

2006

12.

5,479.5

2.3

5,481.8

2,154.2

5,056.6

1.0

126.1

301.0

-2.9

5,481.8

2007

12.

6,726.3

2.2

6,728.5

2,439.7

6,229.0

0.9

74.8

386.4

37.4

6,728.5

2008

12.

6,323.6

2.1

6,325.6

2,552.4

5,704.0

1.0

23.4

499.3

97.9

6,325.6

2009

12.

6,239.9

1.9

6,241.8

2,267.7

5,648.9

0.9

56.7

502.5

33.0

6,241.8

2010

12.

6,485.5

1.8

6,487.3

2,497.5

5,899.7

1.4

69.8

533.9

-17.5

6,487.3

2011

12.

6,451.4

1.6

6,453.0

2,645.1

5,848.9

1.1

66.2

547.6

-10.8

6,453.0

2012

12.

6,536.4

1.6

6,538.0

2,747.5

5,801.7

1.2

185.3

575.7

-25.9

6,538.0

2013

12.

7,096.2

1.7

7,097.8

2,909.9

6,401.0

1.0

258.2

466.3

-28.7

7,097.8

2013

01.

6,356.5

1.6

6,358.1

2,658.7

5,725.5

1.1

124.9

533.9

-27.4

6,358.1

02.

6,405.0

1.6

6,406.5

2,675.8

5,750.4

1.4

125.7

556.3

-27.3

6,406.5

03.

6,358.4

1.7

6,360.0

2,696.0

5,641.2

1.2

170.6

574.2

-27.1

6,360.0

04.

6,405.9

1.6

6,407.6

2,752.7

5,719.8

1.7

165.8

567.9

-47.7

6,407.6

05.

6,424.7

1.7

6,426.4

2,728.3

5,758.9

1.2

178.8

535.4

-48.0

6,426.4

06.

6,490.3

1.7

6,492.0

2,765.8

5,762.1

1.0

299.5

476.8

-47.4

6,492.0

07.

6,611.6

1.6

6,613.2

2,839.7

5,992.1

2.0

158.9

507.5

-47.4

6,613.2

08.

6,850.8

1.6

6,852.4

2,888.1

6,254.3

1.6

146.3

498.0

-47.8

6,852.4

09.

6,926.6

1.6

6,928.2

2,870.7

6,273.1

1.2

198.0

503.4

-47.6

6,928.2

10.

6,902.8

1.5

6,904.3

2,862.2

6,249.5

1.6

180.3

520.2

-47.4

6,904.3

11.

6,911.7

1.5

6,913.2

2,855.7

6,246.0

1.4

196.0

517.1

-47.2

6,913.2

12.

7,096.2

1.7

7,097.8

2,909.9

6,401.0

1.0

258.2

466.3

-28.7

7,097.8

Monetary data are updated based on the new methodology from January 2006.
Note:
The CBBH (monetary authorities) foreign assets comprise gold, foreign currency in the CBBH vault, foreign currency deposits with foreign banks, SDR
holdings,foreign securities and other. Reserve money (primary money or monetary base) includes cash outside monetary authorities, deposits of commercial banks
and deposits of other domestic sectors (except for the central government) with monetary authorities. Cash outside banks represents cash in circulation outside
the Central Bank (monetary authorities) and commercial banks. The CBBH foreign liabilities include short-term liabilities towards non-residents, deposits of nonresidents and other short-term liabilities towards non-residents and liabilities towards the IMF (Accounts 1 and 2). Deposits of central government with the CBBH
are deposits of BH Institutions, entity governments, entity social security funds and the Brko District. Shares and other equity include owners equity, current-year
results, general and special reserves and valuation adjustment. Other items (net) are unallocated liability items after deduction of unallocated asset items.

140

Central Bank of Bosnia and Herzegovina

T09: Consolidated Balance Sheets of Commercial Banks in BH


- end of period, in KM million -

Year

Month

Reserves

Foreign assets

Claims on general
government

Claims on public
non-financial
enterprises

Claims on private
non-financial
enterprises

Claims on other
financial corporations

Claims on other
resident sectors

Total

ASSETS

10 = 3+...+9

1997

12.

239.5

657.8

133.8

1,099.1

1,034.8

8.3

163.6

3,336.9

1998

12.

207.6

604.6

113.0

1,100.0

1,314.3

5.4

388.0

3,733.0

1999

12.

274.7

848.4

36.7

1,003.2

1,449.4

6.3

285.5

3,904.3

2000

12.

287.4

960.7

33.8

1,673.1

874.9

10.9

424.2

4,265.0

2001

12.

871.9

1,364.0

32.9

1,430.8

1,142.8

20.0

712.6

5,574.9

2002

12.

595.2

1,468.7

60.7

1,254.7

1,442.2

27.8

1,495.8

6,345.0

2003

12.

1,004.6

1,561.9

45.6

1,166.7

1,859.6

40.2

2,009.4

7,688.0

2004

12.

1,566.6

1,906.1

45.6

691.7

2,478.2

60.1

2,651.4

9,399.8

2005

12.

2,233.9

2,096.6

50.1

695.0

3,244.0

67.9

3,487.2

11,874.6

2006

12.

3,063.6

2,357.1

70.3

634.4

4,086.1

89.4

4,448.9

14,749.7

2007

12.

4,022.9

3,558.6

128.1

626.7

5,315.7

159.6

5,791.7

19,603.2

2008

12.

3,393.3

3,106.1

266.1

629.2

6,751.6

169.2

6,802.8

21,118.3

2009

12.

3,632.0

3,190.3

356.0

636.1

6,682.5

103.0

6,409.8

21,009.6

2010

12.

3,679.8

2,814.2

465.9

749.1

6,965.5

80.2

6,423.0

21,177.6

2011

12.

3,469.7

2,724.5

905.2

768.8

7,166.9

94.0

6,768.9

21,898.1

2012

12.

3,370.4

2,507.8

1,236.8

789.6

7,473.1

73.7

6,873.3

22,324.6

2013

12.

3,843.7

2,637.3

1,380.0

829.6

7,556.4

67.4

7,137.5

23,452.0

2013

01.

3,377.8

2,358.9

1,244.1

789.9

7,439.5

68.2

6,826.3

22,104.7

02.

3,382.5

2,407.8

1,245.4

785.2

7,492.7

68.7

6,825.9

22,208.1

03.

3,229.1

2,516.3

1,322.1

834.9

7,488.4

81.5

6,865.3

22,337.6

04.

3,285.9

2,373.5

1,327.0

850.6

7,538.7

83.9

6,881.4

22,341.1

05.

3,338.7

2,405.8

1,290.6

854.0

7,557.6

87.5

6,905.4

22,439.6

06.

3,294.5

2,447.7

1,266.1

844.4

7,490.2

90.4

6,946.2

22,379.6

07.

3,464.0

2,525.9

1,255.1

835.9

7,465.8

82.4

6,995.9

22,624.9

08.

3,710.0

2,527.1

1,294.9

832.0

7,456.2

68.2

7,013.1

22,901.5

09.

3,753.4

2,413.1

1,318.3

821.4

7,470.9

69.1

7,059.5

22,905.8

10.

3,731.9

2,558.0

1,307.5

816.2

7,472.1

66.9

7,090.8

23,043.4

11.

3,768.5

2,468.7

1,314.7

813.0

7,519.4

70.6

7,113.9

23,068.9

12.

3,843.7

2,637.3

1,380.0

829.6

7,556.4

67.4

7,137.5

23,452.0

Monetary data are updated based on the new methodology from January 2006.
See note on page 173.
Note:
The consolidated balance sheet of commercial banks of BH inludes consolidated balance sheets of commercial banks covered by the Main Unit Sarajevo, Main Unit
Mostar, Main Bank RS, Brko District (from July 2001 until November 2002), NBRS (until December 1998) and the NBBH (until November 2002). Mutual claims
and liabilities betweeen commercial banks are consolidated. Banks reserves consist of cash in the banks vaults and banks deposits with the Central Bank of Bosnia
and Herzegovina. Foreign assets of commercial banks include: foreign currency in vaults, transferable and other deposits with non-residents in foreign currency,
loans to non-residents, securities other than shares of non-resident in foreign currency, and other claims on non-residents. Claims on general government include
claims on all levels of government: the central government (BH Institutions, entity governments, entity social security funds and Brko Distrikt) and non-central
governments (canton and municipality governments). Claims on other domestic sectors include claims on public non-financial enterprises, private non-financial
enterprises, other financial institutions and claims on other domestic sectors (households, nonprofit institutions and other nonclassified domestic sectors). In
addition to active sub-balance sheets, balance sheets of FBH commercial banks include data from passive sub-balance sheets as well. Passive sub-balance sheets
include liabilities arising from old foreign currency loans as well as liabilities arising from frozen foreign currency deposits pre-dating March 31st, 1992. These
liabilities will be assumed by Ministry of Finance of Federation of BH in the privatization process, in accordance with the entity Law on Opening Balance Sheets of
Enterprises and Banks and with the entity Law on Privatization.

Annual Report 2013

141

T09: Consolidated Balance Sheets of Commercial Banks in BH


- end of period, in KM million -

Year

Month

Deposits of central
government

Transf. dep. of other


resident sectors in
dom. curr.

Transf. dep. of other


resident sectors in
for. curr.

Other dep. of other


resident sectors in
dom. curr.

Other dep. of other


resident sectors in
for. curr.

Securities other than


shares

Loans

Foreign liabilities

Shares and other


equity

Other items (net)

Total

LIABILITIES

10

11

12

13=3+...+12

1997

12.

233.6

139.2

448.5

9.6

363.3

14.2

0.0

1,513.8

1,043.4

-428.5

3,336.9

1998

12.

222.2

147.5

637.9

8.0

467.0

10.6

0.0

1,605.8

1,310.9

-676.8

3,733.0

1999

12.

170.1

584.6

465.5

22.4

577.3

8.7

0.0

1,519.3

1,257.0

-700.6

3,904.3

2000

12.

143.2

749.9

554.5

77.9

428.2

4.4

0.0

1,577.1

1,096.2

-366.4

4,265.0

2001

12.

277.5

1,016.2

928.5

140.9

907.7

0.1

0.0

1,526.5

1,118.8

-341.2

5,574.9

2002

12.

390.3

1,270.3

817.1

272.2

974.4

0.1

0.0

1,793.7

1,213.6

-386.6

6,345.0

2003

12.

473.1

1,510.3

818.3

461.9

1,102.5

0.0

0.0

2,437.0

1,305.4

-420.4

7,688.0

2004

12.

419.4

1,862.9

988.1

703.4

1,604.6

0.0

0.0

2,651.1

1,472.1

-301.8

9,399.8

2005

12.

533.4

2,370.5

1,154.8

818.1

1,999.4

0.0

0.0

3,559.3

1,712.5

-273.4

11,874.6

2006

12.

853.3

2,751.0

692.0

1,365.4

3,105.4

0.0

114.0

4,074.8

1,607.9

185.9

14,749.7

2007

12.

2,335.0

3,534.4

834.5

1,726.5

3,661.1

5.2

106.1

5,165.7

1,979.7

255.2

19,603.2

2008

12.

1,749.7

3,381.4

1,108.0

1,776.2

3,864.7

17.9

264.3

6,361.9

2,285.9

308.4

21,118.3

2009

12.

1,397.9

3,530.3

1,078.7

1,844.3

4,241.0

13.6

446.7

5,744.1

2,333.1

379.8

21,009.6

2010

12.

1,121.7

3,680.5

1,210.6

1,991.0

4,526.4

9.1

595.1

4,783.2

2,521.9

738.2

21,177.6

2011

12.

955.7

3,807.9

1,100.1

2,285.7

4,846.9

0.0

675.3

4,176.9

3,058.7

990.8

21,898.1

2012

12.

847.2

3,714.8

1,053.0

2,672.7

5,042.2

0.0

712.4

3,947.0

3,204.7

1,130.7

22,324.6

2013

12.

717.8

4,137.4

1,189.3

3,006.3

5,203.1

0.0

707.9

3,697.9

3,362.6

1,429.7

23,452.0

2013

01.

787.2

3,722.2

1,081.0

2,667.3

5,038.3

0.0

709.4

3,691.3

3,265.2

1,142.7

22,104.7

02.

784.1

3,709.9

1,071.0

2,681.3

5,029.8

0.0

714.1

3,719.4

3,254.7

1,243.9

22,208.1

03.

764.6

3,827.0

1,061.7

2,715.7

5,107.1

0.0

714.4

3,676.4

3,270.0

1,200.8

22,337.6

04.

719.2

3,823.0

1,047.2

2,754.5

5,099.6

0.0

708.8

3,684.4

3,301.5

1,202.8

22,341.1

05.

728.7

3,849.8

1,070.8

2,806.9

5,081.1

0.0

710.4

3,683.0

3,323.0

1,185.9

22,439.6

06.

698.0

3,803.6

1,156.8

2,776.7

5,042.7

0.0

711.9

3,665.2

3,348.9

1,175.8

22,379.7

07.

769.3

3,937.5

1,116.2

2,761.6

5,040.3

0.0

710.3

3,710.5

3,370.2

1,208.9

22,624.9

08.

743.9

4,117.6

1,110.5

2,809.9

5,082.6

0.0

712.7

3,676.5

3,376.4

1,271.3

22,901.5

09.

720.0

4,110.5

1,133.3

2,888.1

5,081.1

0.0

713.7

3,594.8

3,338.5

1,325.8

22,905.8

10.

771.0

4,057.3

1,168.8

2,931.7

5,133.1

0.0

713.6

3,601.7

3,353.2

1,312.9

23,043.4

11.

736.3

4,037.3

1,170.1

2,965.4

5,146.9

0.0

719.9

3,531.7

3,397.1

1,364.2

23,068.9

12.

717.8

4,137.4

1,189.3

3,006.3

5,203.1

0.0

707.9

3,697.9

3,362.6

1,429.7

23,452.0

Monetary data are updated based on the new methodology from January 2006.
See note on page 173.
Note:
Central government deposits include transferable and other deposits of BH Institutions, entity governments, entity social security funds and the Brko District
in domestic and foreign currency. Transferable and other deposits of other domestic sectors in domestic and foreign currency represent banks liabilities towards
non-central government (canton and municipality governments), public non financial enterprises, private non financial enterprises, other financial institutions
and liabilities to other domestic sectors (households, nonprofit institutions and other nonclassified domestic sectors). Foreign liabilities of commercial banks
include banks liabilities to non-residents based on transferable and other deposits, loans, securities other than shares, trade credits and advances and other
accounts payable. According to the new methodology, loans are presented as a separate financial instrument on the liability side, with addition of accrued interest.
Shares and other equity include owners equity, retained earnings, current-year results, general and special reserves and valuation adjustment. Other items (net)
are unallocated liability items after deduction of unallocated asset items. Restricted deposits are also included in other items (net).

142

Central Bank of Bosnia and Herzegovina

T10a: Interest Rates on Loans to Households


- in percents, at the annual level Households
Interest Rates on Loans in KM

Floating Interest Rate


and up to 1 Year IRF

Over 1 up to 5 Years
IRF

Floating Interest Rate


and up to 1 Year IRF

Over 1 up to 5 Years
IRF

Over 5 Years IRF

Floating Interest Rate


and up to 1 Year IRF

Over 1 up to 5 Years
IRF

Over 5 Years IRF

Over 10 Years IRF

Floating Interest Rate


and up to 1 Year IRF

Over 1 up to 5 Years
IRF

Over 5 Years IRF

Overdrafts

Credit Card with


Extended Credit

Overdraft

Other Loans

Over 1 up to 5 Years
IRF

Housing Loans

Floating Interest Rate


and up to 1 Year IRF

Consumer Loans

Period

Other Loans

Year

Consumer
Loans

Revolving Loans, Overdrafts


and Credit Cards (Loan
Facility and Extended Loan )
Interest
Rates on
Interest Rates
Loans in
on Loans in
KM Indexed
KM
to Foreign
Currency

Interest Rates on Loans in KM Indexed to Foreign Currency

10

11

12

13

14

15

16

17

18

19

2012

2013

01.

8.749

8.196

8.396

9.826

8.072

9.699

9.798

6.783

7.315

7.381

6.601

9.183 10.277

8.774 12.075 10.816

13.746

02.

9.143

8.586

8.539

9.312

8.121

9.714

9.605

6.849

7.831

7.151

7.832

9.051

9.855

9.516 12.096 10.821

13.737

03.

8.527

8.254

8.650

8.673

8.309

9.457

8.962

6.781

7.947

7.412

7.169

9.005

9.605

8.366 12.259 10.977

13.984

04.

7.905

7.777

8.423

8.535

8.499

8.879

8.240

6.764

8.599

7.774

7.149

8.850

9.370

8.695 12.125 10.734

13.926

05.

8.314

7.763

8.291

8.530

8.429

8.759

8.186

6.545

8.087

7.754

7.262

8.807

9.382

8.530 12.063 12.769

12.237

06.

8.481

7.930

7.800

7.924

8.420

8.601

7.901

6.848

8.162

8.171

7.727

8.861

8.937

8.367 13.071 12.867

13.944

07.

8.103

7.363

8.761

7.510

8.751

8.453

7.823

7.000

7.939

7.171

6.695

9.267

8.311

8.157 13.041 12.613

13.864

08.

8.053

7.705

8.358

8.601

8.223

8.758

8.012

6.644

7.727

7.000

6.630

8.970

8.244

8.225 13.062 13.732

13.957

09.

8.213

8.119

8.349

7.494

8.171

8.867

8.003

6.577

7.338

7.356

6.919

9.080

8.743

8.705 13.516 13.841

13.971

10.

8.025

7.743

8.510

7.687

8.219

8.193

8.105

6.776

7.332

7.663

7.136

9.050

9.133

8.254 12.981 13.626

13.909

11.

8.009

7.585

8.282

8.414

8.139

8.356

8.015

7.079

8.184

7.607

7.058

8.973

9.359

7.874 13.121 13.587

13.902

12.

8.269

7.225

8.699

7.996

8.226

8.326

7.983

6.626

8.070

7.210

6.990

9.146

9.278

8.306 13.123 13.825

13.742

01.

8.146

7.353

8.886

7.627

8.001

8.175

7.978

6.594

7.858

7.612

7.018

9.053

9.232

8.271 13.111 13.763

13.882

02.

8.180

7.191

8.979

7.662

8.236

8.432

7.660

6.752

7.652

7.386

6.788

9.063

9.441

8.309 13.158 15.109

13.880

03.

8.037

7.251

8.795

8.321

8.218

8.153

6.678

7.786

7.173

6.763

8.617

8.505

8.294 13.090 15.172

13.878

04.

8.093

7.516

8.376

8.453

8.563

8.166

8.288

6.530

7.555

7.784

6.279

8.819

8.652

8.131 13.120 15.159

13.869

05.

7.630

7.292

7.987

8.127

8.372

8.582

8.774

6.518

7.207

7.167

5.964

8.783

8.600

8.393 12.602 14.559

13.831

06.

7.683

7.478

7.868

8.541

8.262

8.914

6.511

7.030

7.434

6.353

9.055

8.670

8.647 12.576 14.543

13.830

07.

8.393

7.720

8.303

7.967

8.073

8.517

8.723

6.599

7.332

7.238

5.997

9.201

8.627

9.086 12.579 14.683

13.857

08.

7.612

7.704

8.274

8.249

7.814

8.918

9.127

6.335

7.515

6.922

9.219

8.388

8.780 12.584 14.596

13.917

09.

7.575

7.267

7.952

7.493

7.811

8.431

6.560

7.370

6.893

6.584

9.194

8.371

9.019 12.553 14.617

13.928

10.

7.715

7.100

7.773

7.007

7.800

8.767

9.443

6.237

6.859

6.720

5.928

9.153

8.362

8.664 12.530 14.620

13.303

11.

7.993

6.708

7.592

6.902

7.687

8.634

8.713

6.453

6.720

6.764

6.459

8.961

8.216

8.562 12.471 14.617

13.948

12.

8.392

6.742

7.653

7.526

7.795

8.904

8.713

6.388

6.832

6.825

6.056

8.917

8.677

8.538 12.442 14.622

13.907

Note:
Interest rate statistics at BH level, since January 2012, has been harmonized with the methodology defined by the Europen Central Bank. More details are available
by link: http://www.cbbh.ba/index.php?id=883&lang=bs&sub=sks
Revised data for January - June 2013
The interest rates in table for revolving loans and credit cards refer to the existing business (outstanding balances).
IRF - initial rate fixation
... insufficient data to be published
Interest rates on revolving loans and credit cards include the data on credit cards with loan facility. Considering that credit cards with loan facility imply an
interest free deferred payment (0% ir) , they are not published.
No data for interest rates on loans in foreign currency based on credit cards and overdrafts to households .

Annual Report 2013

143

T10b: Interest Rates on Loans to Non-Financial Corporations


- in percents, at the annual level Non-financial Corporations
Interest Rates on Loans in KM
Over
Over EUR
the
0.25 mil
Amount
to EUR 1
of EUR
mil
1 mil

Over
the
Amount
of EUR
1 mil

Over 1 to 5 Years
IRF

Over 5 Years IRF

Floating Interest
Rate and up to 1
Year IRF

Interest Rates on
Loans in KM

Interest Rates
on Loans in KM
Indexed to Foreign
Currency

10

11

12

13

14

15

7.113

7.642

8.967

7.409

7.103

8.070

8.088

6.882

6.370

7.155

02.

7.860

8.247

6.635

6.609

9.133

9.152

8.288

6.385

8.188

6.382

7.088

03.

8.330

8.842

6.511

7.896

8.443

8.468

8.321

7.519

7.047

5.494

6.485

7.050

04.

8.149

8.659

6.631

6.898

8.044

8.784

7.291

7.071

6.920

7.099

6.324

7.031

05.

8.704

9.027

6.684

7.087

9.439

9.040

8.283

6.592

6.297

6.480

7.114

06.

8.626

8.495

7.084

6.405

8.898

8.357

8.084

7.382

8.509

7.545

6.888

6.441

6.964

07.

8.661

8.295

7.138

6.720

8.604

8.370

8.252

7.112

7.156

6.482

6.521

6.963

08.

8.470

8.096

6.807

6.335

7.878

8.475

7.836

7.361

7.726

7.903

6.976

6.717

6.686

09.

8.320

7.834

6.820

6.730

8.888

8.600

7.513

7.186

7.661

6.739

7.810

6.950

6.665

10.

8.290

8.254

6.418

6.462

8.572

7.710

7.627

6.959

7.357

7.257

7.123

6.601

6.661

11.

8.243

7.994

7.057

6.872

8.015

8.624

7.603

7.486

7.530

7.447

7.423

6.718

6.675

12.

8.245

8.005

6.691

6.670

7.689

8.727

7.765

7.998

6.414

7.914

7.000

7.029

6.509

01.

7.995

8.480

6.604

6.312

7.686

8.375

7.201

7.462

6.928

7.686

6.907

7.017

6.573

02.

8.096

8.382

6.563

6.282

7.953

8.549

7.696

7.392

7.354

7.122

7.358

6.995

6.471

03.

8.080

8.133

6.806

6.374

7.983

8.738

7.629

7.392

7.368

7.314

6.493

7.044

6.535

04.

8.045

8.179

6.915

6.165

7.865

8.563

8.223

7.030

6.924

6.937

7.129

6.535

05.

8.127

8.633

6.412

5.519

7.948

8.419

8.314

6.932

7.407

7.809

6.985

6.985

6.515

06.

8.012

8.280

6.490

6.262

7.848

8.528

7.552

7.082

6.800

7.066

6.497

07.

7.733

7.892

6.429

5.815

7.906

8.936

8.424

6.447

7.971

5.328

5.668

7.093

6.532

08.

7.989

7.369

6.564

6.496

8.059

8.978

8.054

6.661

6.182

7.147

6.534

09.

8.030

7.887

6.948

6.653

7.666

8.950

8.479

7.097

7.431

6.836

5.879

6.996

6.508

10.

7.857

7.248

6.882

6.308

7.873

8.712

8.096

7.060

7.547

7.762

5.890

6.917

6.701

11.

7.861

7.182

6.221

6.997

7.778

8.624

7.958

6.790

7.185

6.970

6.526

12.

8.011

7.526

6.460

7.223

7.834

8.231

8.016

6.731

6.707

7.867

6.417

6.838

6.517

2013

Over 1 to 5 Years
IRF

Floating Interest
Rate and up to 1
Year IRF

4
9.133

Floating Interest
Rate and up to 1
Year IRF

3
8.147

Floating Interest
Rate and up to 1
Year IRF

2
01.

Period

1
2012

Year

Floating Interest
Rate and up to 1
Year IRF

Revolving krediti i
prekoraenja

Over 5 Years IRF

Over EUR 0.25 mil


to EUR 1 mil

Floating Interest
Rate and up to 1
Year IRF

Up to the Amount
of EUR 0.25 mil

Over 1 to 5 Years
IRF

Up to the Amount
of EUR 0.25 mil

Interest Rates on Loans in KM Indexed to Foreign Currency

Note:
Interest rate statistics at BH level, since January 2012, has been harmonized with the methodology defined by the European Central Bank. More details are
available by link: http://www.cbbh.ba/index.php?id=883&lang=bs&sub=sks
Revised data for January - June 2013
The interest rates in table for revolving loans and credit cards refer to the existing business (outstanding amounts).
IRF - initial rate fixation
... insufficient data to be published
Interest rates on revolving loans and credit cards include the data on credit cards with loan facility. Considering that credit cards with loan facility imply an
interest free deferred payment (0% ir) , they are not published.
No data for interest rates on loans in foreign currency based on credit cards and overdrafts to non-financial corporations .

144

Central Bank of Bosnia and Herzegovina

T10c: Interest Rates on Deposits of Households and Non-financial Corporations


- in percents at the annual level Households
Deposits in KM and
Deposits Indexed to
Foreign Currency

Non-financial Corporations
Deposits
in Foreign
Currency

Deposits in EUR

With Agreed
Maturit

Up to 1 Year

Over 1 to 2 Years

Over 2 Years

Overnight Deposits

Up to 1 Year

Over 1 to 2 Years

Over 2 Years

Overnight Deposits

With Agreed Maturity

Overnight Deposits

Up to 1 Year

Over 1 to 2 Years

Over 2 Years

Overnight Deposits

Up to 1 Year

Over 1 to 2 Years

Over 2 Years

Overnight Deposits

Overnight Deposits

With Agreed
Maturit

Period

With Agreed
Maturit

Deposits
in
Foreign
Currency

Deposits in EUR

Year

With Agreed
Maturit

Deposits in KM and
Indexed to Foreign
Currency

10

11

12

13

14

15

16

17

18

19

20

21

2012

2013

01.

2.268

3.548

3.781

0.183

2.410

3.384

5.151

0.412

1.508

0.122

2.561

4.094

3.131

0.227

0.670

3.257

0.134

0.114

02.

2.257

3.594

3.841

0.202

2.205

3.554

4.981

0.554

2.090

0.145

2.836

3.959

5.611

0.221

3.551

4.425

0.165

0.108

03.

2.204

3.562

3.543

0.203

2.435

3.661

4.535

0.632

1.178

0.161

2.708

4.308

2.324

0.223

0.947

4.279

0.150

0.131

04.

2.272

3.765

3.622

0.176

3.019

3.973

3.858

0.488

2.156

0.114

2.514

4.136

3.135

0.230

2.340

4.429

0.157

0.209

05.

2.262

3.597

4.138

0.161

2.720

3.829

4.144

0.559

1.504

0.099

3.032

4.453

4.065

0.231

1.996

4.643

0.148

0.118

06.

2.147

3.552

3.925

0.157

2.439

3.797

4.162

0.363

1.689

0.097

2.813

4.819

3.269

0.212

2.114

4.699

5.015

0.201

0.197

07.

2.510

3.661

4.426

0.155

2.586

3.824

4.526

0.303

1.602

0.094

2.736

4.945

4.263

0.203

2.145

5.268

4.905

0.167

0.125

08.

2.296

3.533

3.879

0.134

2.570

3.730

4.028

0.249

2.140

0.076

2.522

4.854

5.091

0.214

2.068

5.162

4.889

0.300

0.134

09.

2.374

3.599

3.269

0.167

2.498

3.672

4.078

0.398

1.848

0.095

2.696

4.965

4.913

0.200

1.578

5.032

3.549

0.249

0.094

10.

2.234

3.496

3.557

0.159

2.531

3.688

4.075

0.393

2.084

0.096

2.474

4.453

5.176

0.215

1.307

4.465

4.046

0.246

0.127

11.

2.350

3.212

3.705

0.163

2.221

3.439

4.020

0.352

2.142

0.092

2.876

4.438

3.302

0.209

2.007

4.934

0.138

0.138

12.

2.079

3.205

4.441

0.140

2.384

3.343

4.022

0.342

1.953

0.092

3.467

4.868

4.159

0.176

1.456

4.026

0.136

0.098

01.

2.169

3.209

4.035

0.139

2.228

3.354

3.887

0.349

1.707

0.090

3.757

4.788

4.448

0.192

1.908

4.127

5.331

0.132

0.158

02.

2.120

3.484

3.835

0.135

2.200

3.452

4.188

0.342

1.653

0.089

3.334

4.930

4.581

0.190

2.114

4.102

4.806

0.128

0.159

03.

1.957

3.182

3.796

0.134

2.243

3.279

4.158

0.345

1.465

0.090

2.228

4.076

4.809

0.209

2.424

3.829

0.152

0.240

04.

1.959

3.459

3.584

0.133

2.239

3.268

3.784

0.318

1.793

0.090

2.119

4.569

4.158

0.206

1.746

4.563

0.139

0.184

05.

2.117

3.157

3.541

0.157

2.253

3.338

3.915

0.305

2.054

0.082

2.152

4.347

4.740

0.220

1.635

4.080

0.209

0.199

06.

2.244

3.282

3.675

0.138

2.281

3.438

4.203

0.264

2.875

0.087

2.469

4.452

3.857

0.216

1.471

4.431

0.210

0.110

07.

2.116

3.301

3.712

0.125

2.238

3.212

4.071

0.262

1.195

0.081

2.307

4.150

4.054

0.210

2.173

0.229

0.161

08.

2.228

3.399

3.639

0.119

2.312

3.355

4.094

0.254

1.350

0.088

2.390

4.091

4.068

0.230

1.178

4.045

3.995

0.150

0.158

09.

2.116

3.320

3.614

0.116

2.293

3.282

4.199

0.246

1.707

0.076

2.307

4.132

4.279

0.231

2.235

3.685

4.123

0.152

0.171

10.

2.186

3.324

3.483

0.117

2.248

3.328

4.010

0.245

1.400

0.075

2.323

4.035

4.528

0.249

2.050

4.082

0.151

0.156

11.

1.959

3.244

3.587

0.116

2.115

3.337

4.111

0.242

1.348

0.075

2.011

4.373

3.630

0.237

1.314

2.892

0.146

0.122

12.

1.986

3.210

3.684

0.116

2.093

3.205

4.067

0.240

1.232

0.075

1.686

3.862

3.933

0.219

2.458

3.517

0.144

0.157

Note:
Interest rate statistics at BH level, since January 2012, has been harmonized with the methodology defined by the European Central Bank. More details are
available by link: http://www.cbbh.ba/index.php?id=883&lang=bs&sub=sks
Interest rates on sight deposits refer to the existing business (outstanding amounts) .
Interest rates on deposits with agreed maturity refer to new business.
... insufficent data for publishing
Deposits in foreign currency include all the foreign currencies other than EUR.

Annual Report 2013

145

T11: Total Deposits and Loans of Commercial Banks


- end of period, in KM million Year

Month

Deposits

Loans

Transferable
deposits

Other deposits

Total deposits

Short - term
loans

Long - term
loans

Total loans

5(3+4)

8(6+7)

1997

12.

784.1

598.3

1,382.4

956.7

1,482.9

2,439.6

1998

12.

983.8

678.7

1,662.5

1,028.2

1,892.6

2,920.8

1999

12.

1,107.7

712.1

1,819.9

852.3

1,928.9

2,781.2

2000

12.

1,385.8

568.0

1,953.7

878.3

2,138.6

3,017.0

2001

12.

2,061.5

1,209.3

3,270.7

913.3

2,425.7

3,339.0

2002

12.

2,293.8

1,430.5

3,724.3

1,097.8

3,183.3

4,281.1

2003

12.

2,553.8

1,812.3

4,366.0

1,233.5

3,888.0

5,121.5

2004

12.

3,121.7

2,456.7

5,578.4

1,576.2

4,350.9

5,927.1

2005

12.

3,876.1

3,000.1

6,876.3

1,837.0

5,707.1

7,544.2

2006

12.

4,005.1

4,758.1

8,763.2

2,068.8

7,130.4

9,199.2

2007

12.

5,106.5

6,980.7

12,087.2

2,552.7

9,298.7

11,851.4

2008

12.

4,905.1

6,970.0

11,875.1

3,439.0

11,070.5

14,509.5

2009

12.

5,215.1

6,877.0

12,092.1

3,399.7

10,650.4

14,050.1

2010

12.

5,557.7

6,972.4

12,530.0

3,626.5

10,916.9

14,543.4

2011

12.

5,518.1

7,474.9

12,993.0

3,984.0

11,327.1

15,311.1

2012

12.

5,306.9

8,019.6

13,326.5

4,283.0

11,658.7

15,941.7

2013

12.

5,771.9

8,478.0

14,249.9

4,335.9

12,074.7

16,410.7

2013

01.

5,256.1

8,036.7

13,292.8

4,241.7

11,622.1

15,863.8

02.

5,248.3

8,024.4

13,272.8

4,276.1

11,635.1

15,911.2

03.

5,341.8

8,130.9

13,472.8

4,311.1

11,702.6

16,013.6

04.

5,267.5

8,172.7

13,440.2

4,349.7

11,765.2

16,114.9

05.

5,364.7

8,169.3

13,534.0

4,390.9

11,774.7

16,165.6

06.

5,373.2

8,101.3

13,474.5

4,324.5

11,814.2

16,138.7

07.

5,550.0

8,071.6

13,621.7

4,248.0

11,881.2

16,129.2

08.

5,684.5

8,176.7

13,861.2

4,236.8

11,925.1

16,161.9

09.

5,672.8

8,256.9

13,929.7

4,270.9

11,937.8

16,208.7

10.

5,704.4

8,354.3

14,058.7

4,263.6

11,968.9

16,232.5

11.

5,655.7

8,396.9

14,052.6

4,323.5

11,979.9

16,303.4

12.

5,771.9

8,478.0

14,249.9

4,335.9

12,074.7

16,410.7

Monetary data have been updated based on the new methodology from January 2006.
See note on page 173.
Note:
Total deposits represent liabilities of commercial banks of BH towards all institutional sectors in domestic and foreign currency. Total loans represent claims of
commercial banks of BH to all domestic institutional sectors, in domestic and foreign currency.

146

Central Bank of Bosnia and Herzegovina

T12: Structure of Transferable Deposits by Sectors in Commercial Banks


- end of period, in KM million -

Year

Month

Deposits of BH
Institution

Entity governments
deposits

Cantonal government
deposits

Municipal government
deposits

Deposits of social
security funds

Deposits of other
financial institutions

Deposits of nonfinancial
public companie

Deposits of nonfinancial
private companies and
cooperatives

Deposits of nonprofit
organisations

Household deposits

Other deposits

Total

DEPOSITS OF ALL DOMESTIC INSTITUTIONAL SECTORS

10

11

12

13

14 = 3++13

1997

12.

0.0

91.2

17.3

15.1

1998

12.

0.5

73.7

19.2

1999

12.

8.8

48.8

54.4

2000

12.

12.5

68.8

2001

12.

17.7

99.1

2002

12.

57.4

2003

12.

47.8

2004

12.

2005
2006

8.9

11.0

204.8

221.8

63.8

136.1

14.0

11.2

4.4

15.2

235.6

14.6

19.6

44.4

285.9

50.2

29.9

25.1

35.7

86.3

35.6

60.4

55.1

149.0

62.0

58.2

50.8

177.4

95.3

63.7

72.2

16.4

254.3

163.9

90.6

12.

36.6

314.2

231.4

12.

44.2

393.7

351.8

2007

12.

45.7

544.5

2008

12,

52.3

255.2

2009

12.

41.4

2010

12.

58.8

2011

12.

2012

12.

2013
2013

784.1

299.1

70.8

240.6

13.4

983.8

298.6

101.4

158.9

72.3

1,107.7

334.0

394.1

107.3

236.9

91.2

1,385.8

333.4

569.9

88.7

697.2

18.2

2,061.5

72.3

397.1

544.5

105.9

789.6

7.2

2,293.8

85.7

501.6

506.6

104.5

892.5

6.4

2,553.8

104.6

86.3

486.9

656.8

118.4

1,134.9

8.6

3,121.7

118.7

82.2

113.0

557.9

919.1

108.6

1,385.4

9.1

3,876.1

169.8

124.3

155.2

698.3

1,067.2

137.3

853.3

10.1

4,005.1

381.0

242.0

147.5

186.2

741.0

1,321.0

176.2

1,311.7

9.6

5,106.5

271.7

204.0

108.2

137.5

782.5

1,328.9

161.3

1,558.8

44.7

4,905.1

416.0

352.7

187.9

148.6

146.5

852.9

1,280.0

173.1

1,601.4

14.5

5,215.1

458.1

291.0

194.6

149.7

144.2

724.5

1,444.3

172.4

1,904.0

16.1

5,557.7

42.2

413.1

290.9

190.0

154.8

176.9

688.5

1,447.8

182.1

1,917.2

14.7

5,518.1

94.0

339.2

231.1

195.2

105.9

161.5

517.6

1,443.4

186.5

2,015.3

17.0

5,306.9

12.

65.3

300.8

228.1

172.4

79.0

209.7

615.2

1,667.4

194.4

2,226.8

12.8

5,771.9

01.

70.8

290.1

244.0

208.4

91.9

173.9

583.7

1,374.7

198.9

2,003.5

16.1

5,256.1

02.

71.9

305.9

216.0

179.8

89.7

180.6

613.1

1,327.6

192.4

2,057.7

13.7

5,248.3

03.

72.6

301.5

208.3

178.6

79.1

203.4

645.9

1,372.9

188.9

2,073.5

17.0

5,341.8

04.

81.0

238.3

200.9

167.5

78.1

155.9

676.2

1,364.6

186.3

2,104.8

14.1

5,267.5

05.

72.5

281.8

216.8

174.1

89.8

173.6

681.9

1,373.3

189.2

2,095.6

16.2

5,364.7

06.

69.9

272.2

205.5

172.0

70.7

169.4

672.0

1,431.6

194.8

2,098.8

16.3

5,373.2

07.

70.9

353.5

202.2

186.7

71.9

170.9

664.8

1,505.7

202.3

2,104.6

16.5

5,550.0

08.

71.8

300.6

223.3

194.9

84.0

199.7

692.4

1,591.0

205.0

2,106.1

15.8

5,684.5

09.

75.7

293.0

221.1

182.3

60.3

186.4

696.6

1,595.3

198.8

2,147.6

15.7

5,672.8

10.

75.0

338.3

224.7

178.0

64.8

180.4

693.0

1,598.1

199.2

2,139.2

13.5

5,704.4

11.

91.7

295.7

226.0

178.0

61.0

181.0

679.4

1,567.5

191.0

2,167.3

17.1

5,655.7

12.

65.3

300.8

228.1

172.4

79.0

209.7

615.2

1,667.4

194.4

2,226.8

12.8

5,771.9

Monetary data have been updated based on the new methodology from January 2006.
See note on page 173.
Note:
Transferable deposits are available on demand without restrictions and penalties, directly usable for payments to third parties, special saving accounts with
automatic transfer to regular transferable deposits.

Annual Report 2013

147

T13: Structure of Other Deposits by Sectors in Commercial Banks


- end of period, in KM million -

Deposits of BH
institutions

Entity governments
deposits

Deposits of cantonal
governments

Deposits of municipal
governments

Deposits of social
security funds

Deposits of nonbank
financial institutions

Deposits of
nonfinancial public
enterprises

Deposits of
nonfinancial private
enterprises and
cooperatives

Deposits of nonprofit
organisations

Household deposits

Other deposits

Total

10

11

12

13

14 = 3++13

12.

0.0

225.5

24.7

5.9

5.8

17.6

40.6

128.3

10.7

137.3

1.9

598.3

12.

0.5

203.3

3.9

7.1

6.3

22.1

38.1

178.1

12.4

206.3

0.6

678.7

1999

12.

0.4

112.1

10.8

1.6

2.8

19.1

43.5

255.6

18.8

245.9

1.7

712.1

2000

12.

5.3

56.5

18.0

4.4

7.6

29.7

42.8

86.8

25.8

285.5

5.6

568.0

2001

12.

10.6

150.2

33.5

4.2

8.5

36.9

60.0

120.7

18.4

750.1

16.2

1,209.3

2002

12.

23.3

160.6

41.2

12.6

4.2

87.8

59.1

182.9

21.7

831.7

5.3

1,430.5

2003

12.

29.1

218.8

54.5

22.2

3.1

103.0

127.3

195.0

19.9

1,033.4

6.0

1,812.3

2004

12.

20.0

128.6

66.3

28.4

2.6

126.2

355.9

336.1

28.3

1,354.2

10.0

2,456.7

2005

12.

8.2

174.4

58.5

18.9

19.7

190.3

339.1

341.4

41.0

1,801.9

6.7

3,000.1

2006

12.

22.7

222.3

35.6

33.0

42.4

168.3

405.0

516.0

50.9

3,246.9

15.1

4,758.1

2007

12.

11.8

1,457.4

56.4

47.4

124.0

217.5

537.8

595.4

59.8

3,854.2

18.9

6,980.7

2008

12.

16.0

1,211.7

21.3

50.1

101.5

334.0

758.5

743.7

78.1

3,647.0

8.2

6,970.0

2009

12.

4.7

725.3

20.9

48.8

61.7

478.8

753.5

606.0

100.5

4,062.0

14.8

6,877.0

2010

12.

22.5

383.2

16.8

41.2

49.2

438.8

825.0

504.5

91.2

4,580.4

19.6

6,972.4

2011

12.

62.8

237.8

24.0

30.0

41.7

567.5

817.1

471.5

79.1

5,134.1

9.2

7,474.9

2012

12.

31.7

242.0

21.4

27.6

31.0

598.3

779.7

537.8

87.1

5,639.9

23.0

8,019.6

2013

12.

62.7

170.8

21.0

26.6

35.0

651.4

724.7

531.1

100.3

6,137.1

17.1

8,478.0

2013

01.

59.4

238.6

21.0

23.0

33.1

598.8

742.3

540.0

86.3

5,683.0

11.3

8,036.7

02.

61.6

215.4

21.1

21.5

36.3

600.2

725.7

507.3

82.4

5,742.0

10.9

8,024.4

03.

63.1

211.3

22.1

25.2

33.8

610.3

742.4

514.4

85.9

5,810.1

12.4

8,130.9

04.

63.0

218.1

22.1

36.8

37.4

604.6

751.9

519.4

87.2

5,819.8

12.4

8,172.7

05.

63.5

183.7

22.2

36.5

34.2

612.2

776.1

508.1

85.7

5,834.8

12.5

8,169.3

06.

62.6

180.7

21.6

32.5

38.6

618.7

711.3

506.4

84.0

5,832.4

12.6

8,101.3

07.

62.7

167.9

21.6

32.6

39.1

612.5

692.1

481.0

89.1

5,860.0

13.0

8,071.6

08.

63.1

179.5

20.3

32.0

41.5

619.0

697.2

512.2

89.5

5,909.1

13.2

8,176.7

09.

62.7

182.8

21.1

36.8

42.3

608.3

711.5

540.1

92.0

5,946.7

12.8

8,256.9

10.

63.0

183.5

20.8

37.5

43.0

623.0

722.9

547.5

94.4

6,005.0

13.8

8,354.3

11.

62.4

184.7

20.8

36.7

37.6

622.2

716.3

559.5

96.1

6,044.2

16.5

8,396.9

12.

62.7

170.8

21.0

26.6

35.0

651.4

724.7

531.1

100.3

6,137.1

17.1

8,478.0

Year

Month

DEPOSITS OF ALL DOMESTIC INSTITUTIONAL SECTORS

1
1997
1998

Monetary data have been updated based on the new methodology from January 2006.
See note on page 173.
Note:
Other deposits permit automatic cash withdrawals but not payments to third parties, time and savings deposits and other deposits.

148

Central Bank of Bosnia and Herzegovina

T14: Structure of Short-Term Loans by Sectors of Commercial Banks


- end of period, in KM million -

Year

Month

Loans to BH
institutions

Loans to entity
governments

Loans to cantonal
governments

Loans to municipal
governments

Loans to social
security funds

Loans to nonbank
financial institutions

Loans to nonfinancial
public companies

Loans to nonfinancial
private companies and
cooperatives

Loans to nonprofit
organizations

Loans to households

Other loans

Total

LOANS TO ALL DOMESTIC INSTITUTIONAL SECTORS

10

11

12

13

14 = 3++13

1997

12.

0.0

129.0

3.0

1.4

0.3

2.7

202.1

516.6

3.4

66.9

31.0

956.7

1998

12.

0.0

104.5

4.5

2.6

1.5

0.4

199.8

535.9

6.2

42.7

130.2

1,028.2

1999

12.

0.1

20.0

8.4

2.5

5.7

1.1

189.2

548.6

2.6

61.6

12.4

852.3

2000

12.

0.7

23.9

1.9

7.2

0.2

3.2

246.6

469.5

33.4

88.3

3.6

878.3

2001

12.

0.0

7.5

13.3

8.8

3.4

11.6

215.2

544.5

22.5

84.1

2.5

913.3

2002

12.

8.6

23.3

13.7

9.5

5.5

15.3

210.5

655.9

13.2

135.1

7.2

1,097.8

2003

12.

0.6

23.5

4.8

16.7

0.0

24.8

158.9

815.2

7.4

154.0

27.6

1,233.5

2004

12.

0.0

20.9

2.5

22.2

0.0

31.4

160.6

1,056.0

5.2

270.1

7.2

1,576.2

2005

12.

0.0

18.6

3.7

27.8

0.0

41.4

116.8

1,213.8

6.1

396.4

12.5

1,837.0

2006

12.

0.1

6.8

2.2

1.4

0.1

30.1

88.8

1,453.4

11.8

466.6

7.5

2,068.8

2007

12.

0.0

6.9

2.3

0.3

0.0

53.5

84.6

1,819.0

17.0

564.5

4.6

2,552.7

2008

12.

0.0

6.6

2.3

10.4

0.1

69.8

87.4

2,579.8

32.8

645.7

4.2

3,439.0

2009

12.

0.0

9.3

2.2

31.7

33.5

33.4

90.9

2,459.8

10.6

716.4

12.0

3,399.7

2010

12.

0.0

6.7

2.3

21.9

40.6

28.1

80.3

2,624.0

13.5

801.9

7.1

3,626.5

2011

12.

0.0

12.5

1.4

21.5

26.0

37.4

81.5

2,935.2

5.9

858.4

4.2

3,984.0

2012

12.

0.0

3.2

0.7

22.2

9.9

41.1

85.0

3,188.4

6.7

919.5

6.3

4,283.0

2013

12.

0.0

13.5

0.6

40.1

35.3

28.5

100.2

3,152.2

5.5

942.2

17.8

4,335.9

2013

01.

0.0

3.0

0.8

21.7

9.8

35.7

90.5

3,158.7

5.3

910.6

5.6

4,241.7

02.

0.0

2.9

0.9

21.5

17.5

36.8

78.6

3,202.8

4.7

904.5

5.8

4,276.1

03.

0.0

3.5

3.6

24.0

17.7

49.3

88.7

3,190.6

8.7

918.6

6.3

4,311.1

04.

0.0

3.2

4.4

24.8

17.5

48.8

102.6

3,218.8

4.8

911.2

13.4

4,349.7

05.

0.0

3.1

6.2

25.1

15.7

53.0

108.6

3,239.2

4.4

921.3

14.4

4,390.9

06.

0.0

3.4

7.8

25.2

21.3

53.8

105.4

3,166.3

4.8

923.8

12.7

4,324.5

07.

0.0

3.5

3.9

25.1

18.8

42.7

103.3

3,106.7

5.2

924.4

14.5

4,248.0

08.

0.0

3.7

6.5

28.6

37.6

28.6

97.0

3,089.2

4.8

928.0

12.6

4,236.8

09.

0.0

3.7

7.2

28.4

40.7

27.2

97.0

3,109.1

5.4

939.1

13.2

4,270.9

10.

0.0

3.8

4.0

27.0

40.6

24.1

97.7

3,106.2

5.2

942.1

13.0

4,263.6

11.

0.0

6.5

7.5

27.2

41.1

26.9

97.2

3,152.9

5.1

944.3

14.7

4,323.5

12.

0.0

13.5

0.6

40.1

35.3

28.5

100.2

3,152.2

5.5

942.2

17.8

4,335.9

Monetary data have been updated based on the new methodology from January 2006.
See note on page 173.
Note:
Until 2006, total claims on all level government and funds (short-term and long-term) were shown in the Table Short-term Loans (columns 3, 4, 5, 6, 7) as total
amounts because the source data by maturity are not available. Short-terms loans represent claims of commercial banks on all domestic institutional sectors up to
one year, in domestic and foreign currency.

Annual Report 2013


T15: Structure of Long -Term Loans by Sectors of Commercial Banks
- end of period, in KM million -

149

Loans to nonfinancial
public enterprises

Loans to nonfinancial
private enterprises and
cooperatives

Loans to nonprofit
organizations

Loans to households

Other loans

Total

Loans to social
security funds

Loans to nonbank
financial institutions

Loans to municipal
governments

10

11

12

13

14 = 3++13

1997

12.

5.6

897.0

518.1

3.4

54.0

4.8

1,482.9

1998

12.

5.0

900.2

778.4

0.7

204.8

3.3

1,892.6

1999

12.

5.2

814.0

900.8

2.1

206.4

0.4

1,928.9

2000

12.

7.8

1,426.5

405.4

3.1

295.9

0.0

2,138.6

2001

12.

8.4

1,215.6

598.3

5.7

597.8

0.0

2,425.7

2002

12.

12.4

1,044.2

786.3

4.5

1,321.2

14.6

3,183.3

2003

12.

15.4

1,007.8

1,044.3

3.9

1,812.4

4.2

3,888.0

2004

12.

28.7

531.1

1,422.2

6.8

2,357.5

4.7

4,350.9

2005

12.

26.5

578.3

2,030.2

10.8

3,057.0

4.4

5,707.1

2006

12.

0.0

0.4

1.3

56.2

0.6

31.8

542.5

2,592.7

10.3

3,893.0

1.5

7,130.4

2007

12.

0.7

8.8

1.1

92.3

15.5

77.9

539.6

3,439.2

18.5

5,104.4

0.9

9,298.7

2008

12.

1.7

95.6

0.9

132.5

13.5

73.9

539.1

4,142.2

19.5

6,051.1

0.5

11,070.5

2009

12.

1.4

89.2

2.1

155.5

19.7

43.6

542.9

4,186.9

17.4

5,590.8

0.9

10,650.4

2010

12.

0.1

105.8

40.2

201.6

26.5

27.0

657.4

4,309.5

17.4

5,522.3

9.1

10,916.9

2011

12.

0.0

233.2

42.8

251.1

38.8

25.4

682.5

4,186.7

12.7

5,846.4

7.5

11,327.1

2012

12.

0.0

404.3

68.7

289.5

28.4

19.3

700.4

4,248.8

16.3

5,875.2

7.9

11,658.7

2013

12.

0.0

418.6

77.9

299.4

17.5

23.4

728.5

4,369.0

15.0

6,123.0

2.5

12,074.7

2013

01.

0.0

406.7

78.7

286.7

27.5

19.0

696.1

4,244.0

15.5

5,840.1

7.7

11,622.1

02.

0.0

402.7

78.2

283.8

26.7

18.4

703.1

4,253.2

16.1

5,845.6

7.3

11,635.1

03.

0.0

402.8

78.9

279.2

25.8

18.7

743.2

4,262.2

15.8

5,868.9

6.9

11,702.6

04.

0.0

420.1

77.8

278.9

24.8

21.6

744.2

4,285.0

15.1

5,890.9

6.9

11,765.2

05.

0.0

417.5

76.5

276.5

23.9

20.8

742.3

4,282.1

15.0

5,913.2

6.8

11,774.7

06.

0.0

412.8

74.9

278.5

23.1

22.3

738.1

4,291.1

14.4

5,952.5

6.7

11,814.2

07.

0.0

409.6

72.0

279.0

22.2

23.9

731.8

4,325.1

13.8

5,997.4

6.6

11,881.2

08.

0.0

412.0

71.0

291.3

21.3

25.3

734.0

4,333.2

13.7

6,017.1

6.4

11,925.1

09.

0.0

410.2

67.5

291.9

20.5

24.5

723.5

4,328.2

15.2

6,050.2

6.1

11,937.8

10.

0.0

407.6

65.7

302.8

19.4

23.9

717.7

4,333.3

16.5

6,076.4

5.6

11,968.9

11.

0.0

405.4

66.0

302.4

18.5

24.5

714.9

4,330.1

16.3

6,096.4

5.5

11,979.9

12.

0.0

418.6

77.9

299.4

17.5

23.4

728.5

4,369.0

15.0

6,123.0

2.5

12,074.7

Year

Loans to BH
institutions

Month

Loans to entity
governments

Loans to cantonal
governments

LOANS TO ALL DOMESTIC INSTITUTIONAL SECTORS

Monetary data have been updated based on the new methodology from January 2006.
See note on page 173.
Note:
Until 2006, total claims on all level government and funds (short-term and long-term) were shown in the Table Short-term Loans (columns 3, 4, 5, 6, 7) as total
amounts because the source data by maturity are not available. Long term loans represent claims of commercial banks on all domestic institutional sectors, in
excess of one year, in domestic and foreign currency.

150

Central Bank of Bosnia and Herzegovina

T16: KM Buying and Selling


- in KM thousand Year

Month

Selling

1997

Buying

Balance

Cumulative Balance

5(3-4)

71,484

71,160

324

324

1998

382,193

319,508

62,685

63,009

1999

1,136,535

577,983

558,552

621,561

2000

1,413,730

1,287,796

125,934

747,495

2001

3,758,768

2,141,044

1,617,724

2,365,219

2002

3,665,370

3,907,317

-241,947

2,123,272

2003

2,026,594

1,751,730

274,864

2,398,136

2004

4,295,881

3,648,609

647,273

3,045,409

2005

3,324,413

2,623,382

701,031

3,746,440

2006

3,316,074

2,181,712

1,134,362

4,880,802

2007

3,878,146

2,822,867

1,055,279

5,936,081

2008

4,933,211

5,564,318

-631,108

5,304,973

2009

4,197,642

4,234,491

-36,849

5,268,124

2010

5,273,777

5,014,550

259,227

5,527,351

2011

5,088,041

5,162,710

-74,669

5,452,682

2012

5,511,162

5,491,846

19,316

5,471,998

2013

4,588,615

3,918,598

670,017

6,142,015

01.

374,157

459,359

-85,202

5,386,796

02.

389,004

360,954

28,050

5,414,846

2013

03.

274,521

380,376

-105,855

5,308,991

04.

311,357

198,901

112,457

5,421,447

05.

382,044

327,000

55,044

5,476,492

06.

316,579

311,385

5,193

5,481,685

07.

434,449

229,599

204,851

5,686,536

08.

408,612

155,949

252,663

5,939,199

09.

418,529

387,695

30,834

5,970,033

10.

384,338

388,785

-4,446

5,965,587

11.

249,445

234,793

14,652

5,980,239

12.

645,579

483,802

161,777

6,142,015

Annual Report 2013

151

T17: Average Required Reserves


- in KM thousand Year

Month

Base for calculation


of required reserves

Average reserve
requirement

Average balance in
reserve accounts

Total funds
for reserve
maintenance*

Balance

7=6-4

1998

131,976

13,198

38,350

42,028

28,830

1999

288,950

28,895

107,506

115,974

87,079

2000

709,104

70,910

232,435

260,143

189,233

2001

979,952

97,995

242,144

340,140

242,144

2002

1,510,313

151,031

317,169

460,097

309,065

6,596,857

406,560

1,061,712

1,061,712

655,151

2003**
2004
2005

8,456,603

885,528

1,516,182

1,516,182

630,653

2006

10,905,879

1,635,882

2,372,908

2,372,908

737,026

2007

14,328,455

2,149,268

3,309,562

3,309,562

1,160,294

2008

17,320,130

2,961,865

3,630,571

3,630,571

668,706

2009

16,194,265

1,754,398

3,010,417

3,010,417

1,256,019

2010

15,617,849

1,624,905

3,154,793

3,154,793

1,529,888

2011

15,227,393

1,323,886

2,959,315

2,959,315

1,635,429

2012

14,755,574

1,257,850

2,711,013

2,711,013

1,453,163

2013

15,162,241

1,290,758

3,103,865

3,103,865

1,813,107

2013

01.

14,913,292

1,267,635

2,998,689

2,998,689

1,731,054

02.

14,908,213

1,267,517

2,985,255

2,985,255

1,717,738

03.

14,893,699

1,264,930

2,943,484

2,943,484

1,678,555

04.

15,003,840

1,274,477

2,893,789

2,893,789

1,619,312

05.

15,083,600

1,283,054

2,988,170

2,988,170

1,705,117

06.

15,061,603

1,282,163

2,940,881

2,940,881

1,658,717

07.

15,062,897

1,283,394

3,040,510

3,040,510

1,757,116

08.

15,159,670

1,292,755

3,199,233

3,199,233

1,906,479

09.

15,343,843

1,308,637

3,319,304

3,319,304

2,010,667

10.

15,390,362

1,311,856

3,279,492

3,279,492

1,967,636

11.

15,545,300

1,325,137

3,370,832

3,370,832

2,045,694

12.

15,580,575

1,327,541

3,286,745

3,286,745

1,959,205

Note:
From June 1st, 2003 the following changes were made in calculation of required reserves: the required reserves rate was reduced from 10% to 5%, foreign
currency deposits and borrowing were included in the base for calculation of required reserves, in addition to deposits in KM, while cash holdings in
banks vaults were eliminated as an eligible asset for maintenance of required reserves.
From September 1st, 2004 the reserve requirement was increased to 7,5% and from December 1st, 2004 it was increased to 10%.
From December 1st, 2005 the required reserves rate was 15%. The remuneration rate was calculated as follows: - on the amount a given bank is required
to maintain as required reserves - 0,5%, - on the amount in excess of the required reserve on the basis of an arithmetic average and/or weighted average
of interest rates which the Central Bank earned in the same period on deposits invested up to a month.
From January 1st, 2008 the required reserves rate was increased from 15% to 18%.
From October 11th, 2008 the required reserves rate was decreased from 18% to 14%.
From January 1st, 2009 the required reserves rate was 14% on deposits and borrowed assets with contracted maturity up to one year and 10% on deposits
and borrowed assets with contracted maturity over one year.
From May 1st, 2009 the required reserves rate was 7% on deposits and borrowed assets with contracted maturity over one year.
From April 1 st, 2009 the remuneration rate was calculated as follows:
- on the amount of required reserves it is 0,5%,
- on the amount in excess of required reserves, at the rate calculated as an average of interest rates earned by the Central Bank on deposits invested up
to one month.
From July 1, 2010 the remuneration rate on the amount of required reserves is changed and calculated as an average of interest rates, which were earned
by the Central Bank on overnight deposits in the same period, while the remuneration rate on the amount of excess reserves remained unchanged.
From February 1st, 2011 the required reserves rate on deposits and borrowed assets with contracted maturity up to one year was declined from 14% to
10%, while required reserves rate on deposits and borrowed assets with contracted maturity over one year was not changed.
From August 1, 2011 the remuneration rate is calculated as the weighted average interest rate which was earned by the Central Bank of BH in the market
on deposits invested up to a month in the same period; 70% of this rate is applied for the amount of required reserves, and 90% of the same rate on the
amount of excess reserves.
*Until 2003, the assets in banks vaults were included in total funds for required reserves maintenance.
**Data on average required reserves for 2003 are not applicable due to a change in calculation of required reserves from June 1, 2003.

152

Central Bank of Bosnia and Herzegovina

T18: Payments System Transactions


- in KM million RTGS

GIRO CLEARING

Year

Month

Volume of
transactions

Value

TOTAL

Volume of
transactions

Value

Volume of
transactions

Value

7=3+5

8=4+6

2001

332,622

9,701

11,583,600

7,144

11,916,222

16,845

2002

257,691

13,520

15,269,148

8,990

15,526,839

22,510

2003

293,847

14,460

17,427,404

9,883

17,721,251

24,342

2004

480,935

19,179

20,761,227

9,205

21,242,162

28,384

2005

521,014

27,237

22,388,413

8,958

22,909,427

36,195

2006

591,823

37,280

24,309,113

10,448

24,900,936

47,728

2007

704,702

48,174

27,662,395

12,018

28,367,097

60,193

2008

766,690

57,335

28,831,882

13,009

29,598,572

70,345

2009

692,669

52,283

28,346,898

12,175

29,039,567

64,458

2010

713,755

55,281

31,060,911

12,498

31,774,666

67,779

2011

760,459

63,608

31,729,367

13,046

32,489,826

76,653

2012

763,522

68,310

33,073,839

13,223

33,837,361

81,533

2013
2013

773,099

63,232

35,026,526

13,373

35,799,626

76,605

01.

55,683

5,160

2,498,706

942

2,554,389

6,102

02.

56,362

4,784

2,553,771

959

2,610,133

5,743

03.

59,425

4,941

2,808,636

1,023

2,868,061

5,964

04.

67,646

5,373

3,067,311

1,199

3,134,958

6,572

05.

63,360

5,553

2,938,046

1,108

3,001,406

6,661

06.

61,892

4,947

2,842,036

1,075

2,903,928

6,022

07.

71,836

5,902

3,298,544

1,242

3,370,380

7,145

08.

65,736

5,189

2,910,860

1,128

2,976,596

6,317

09.

66,297

5,541

2,959,092

1,163

3,025,389

6,704

10.

69,248

5,438

3,141,561

1,199

3,210,809

6,637

11.

62,832

4,761

2,829,472

1,099

2,892,304

5,860

12.

72,782

5,643

3,178,491

1,236

3,251,273

6,879

Annual Report 2013

153

T19: BH Balance of Payments


- in KM million CURRENT AND CAPITAL ACCOUNT
Current account
Period

Goods

Services

Primary
income

Secondary
income

Capital
account

FINANCIAL
ACCOUNT

Total

NET ERRORS
AND OMISSIONS

2007

-8,935

2,318

723

3,901

415

-1,578

-1,682

-104

2008

-10,665

2,385

943

3,827

383

-3,127

-3,292

-165

2009

-7,786

1,903

955

3,341

350

-1,237

-1,113

124

2010

-7,629

2,159

413

3,529

389

-1,139

-976

163

2011

-8,346

2,116

215

3,504

357

-2,155

-2,040

115

2012

-8,445

2,187

232

3,643

336

-2,047

-1,814

233

2013

-7,802

2,255

513

3,599

337

-1,098

-833

265

2011 Q1

-1,716

497

88

801

84

-246

-385

-139

2011 Q2

-2,096

503

15

874

92

-612

-560

52

2011 Q3

-2,220

563

100

913

91

-553

-414

139

2011 Q4

-2,315

553

13

916

90

-744

-681

62

2012 Q1

-1,912

476

48

821

76

-492

-671

-178

2012 Q2

-2,063

559

-19

920

80

-524

-345

179

2012 Q3

-2,358

645

97

937

91

-588

-413

175

2012 Q4

-2,113

509

106

966

89

-443

-385

58

2013 Q1

-1,776

490

72

797

77

-340

-479

-139

2013 Q2

-1,805

602

30

878

79

-216

-203

13

2013 Q3

-2,053

635

165

954

92

-206

-6

200

2013 Q4

-2,168

527

246

970

89

-336

-144

192

Note:
BH balance of payments has been prepared according to the IMF methodology (Balance of Payments Manual, sixth edition).
The data for the period 2007-2012 have been revised and published together with the data for 2013.
The most important revisions during the period 2007-2012 have appeared as a result of:
- the conducted research (polls) in the CBBH
-use of the new published data of domestic and foreign institutions.

154

Central Bank of Bosnia and Herzegovina

T20: Balance of Payments - Current Account and Capital Account


- in KM million

CURRENT ACCOUNT
Total

Period
2007

Credit
11,480

Debit
13,473

Goods
Balance
-1,993

Credit
2,802

Services

Debit
11,738

Credit
3,024

Debit
707

CAPITAL ACCOUNT

Primary income

Secondary income

Credit

Credit

1,553

Debit
830

4,101

Debit

Credit

200

415

Debit Balance
0

415

2008

12,247

15,758

-3,510

3,397

14,062

3,158

774

1,656

713

4,036

209

383

383

2009

10,848

12,436

-1,587

3,213

11,000

2,791

888

1,265

309

3,579

238

350

350

2010

11,905

13,433

-1,528

4,281

11,911

2,956

797

881

468

3,787

257

389

389

2011

12,740

15,251

-2,511

5,134

13,481

2,890

774

934

719

3,782

278

357

357

2012

12,729

15,112

-2,383

5,036

13,481

2,909

721

865

632

3,920

277

336

336

2013

13,115

14,550

-1,435

5,474

13,276

2,932

677

831

318

3,878

279

337

337

2011 Q1

2,922

3,252

-330

1,207

2,923

629

132

217

129

869

68

84

84

2011 Q2

3,159

3,863

-704

1,309

3,405

678

174

227

212

946

72

92

92

2011 Q3

3,418

4,062

-644

1,318

3,538

864

301

255

155

981

68

91

91

2011 Q4

3,242

4,075

-833

1,301

3,616

719

166

236

223

986

70

90

90

2012 Q1

2,765

3,333

-568

1,085

2,997

594

119

197

149

888

67

76

76

2012 Q2

3,295

3,899

-604

1,360

3,422

731

172

217

236

987

68

80

80

2012 Q3

3,469

4,148

-679

1,303

3,661

925

280

231

134

1,010

73

91

91

2012 Q4

3,200

3,732

-532

1,288

3,400

659

150

219

113

1,035

70

89

89

2013 Q1

2,890

3,308

-418

1,212

2,988

614

124

198

126

867

70

77

77

2013 Q2

3,414

3,709

-294

1,493

3,298

767

165

206

176

949

70

79

79

2013 Q3

3,516

3,814

-298

1,382

3,435

887

251

225

60

1,022

68

92

92

2013 Q4

3,294

3,719

-425

1,387

3,555

664

137

202

-44

1,041

71

89

89

Note:
BH balance of payments has been prepared according to the IMF methodology (Balance of Payments Manual, sixth edition).
The data for the period 2007-2012 have been revised and published together with the data for 2013.
The most important revisions during the period 2007-2012 have appeared as a result of:
- the conducted research (polls) in the CBBH
-use of the new published data of domestic and foreign institutions.

Annual Report 2013

155

T21: Balance of Payments - Financial Account


- in KM million
Period

FINANCIAL ACCOUNT
Direct investments

2007

-2,506

2008
2009

Portfolio investments

Other investments

Reserve assets

Total

-422

1,242

-1,682

-1,315

29

-1,543

-462

-3,292

-344

274

-939

-104

-1,113

2010

-532

173

-875

258

-976

2011

-669

46

-1,383

-33

-2,040

2012

-534

18

-1,370

73

-1,814

2013

-507

132

-1,167

709

-833

2011 Q1

-176

-2

76

-282

-385

2011 Q2

-80

98

-518

-60

-560

2011 Q3

-206

-35

-305

132

-414

2011 Q4

-207

-14

-637

177

-681

2012 Q1

-61

-7

-289

-314

-671

2012 Q2

-163

44

-230

-345

2012 Q3

-154

-18

-634

394

-413

2012 Q4

-156

-2

-451

224

-385

2013 Q1

-301

50

-60

-168

-479

2013 Q2

-153

23

-313

241

-203

2013 Q3

-28

20

-446

447

-6

2013 Q4

-25

39

-348

189

-144

Note:
BH balance of payments has been prepared according to the IMF methodology (Balance of Payments Manual, sixth edition).
The data for the period 2007-2012 have been revised and published together with the data for 2013.
The most important revisions during the period 2007-2012 have appeared as a result of:
- the conducted research (polls) in the CBBH
-use of the new published data of domestic and foreign institutions.

156

Central Bank of Bosnia and Herzegovina

T22: Government Sector Foreign Debt Servicing


- in KM thousand Creditor

2010

2011

2013

2012

Principal

Interest

Total

Public creditors

237,153

269,064

339,601

531,589

85,623

617,212

International and regional organizations

194,974

226,021

290,493

495,820

63,317

559,137

European Investment Bank

25,148

30,871

38,236

23,015

17,789

40,804

European Bank for Reconstr. and Development

57,909

72,598

75,034

80,331

10,666

90,998

World Bank - IDA

38,642

43,102

49,547

38,319

12,977

51,296

World Bank - IBRD1)

47,811

48,164

51,290

35,689

9,368

45,057

Council of Europe Development Bank1)


International Fund of Agriculture Development
IMF

654

651

991

1,170

648

1,818

1,489

1,932

2,341

1,803

504

2,307

11,001

15,463

64,134

307,670

11,053

318,723

EUROFIMA

7,580

8,398

European Commision

4,741

4,844

8,919

7,823

311

8,134

Government and government agencies


Paris Club1)
Saudi Development Fund
Other bilateral2)

42,179

43,043

49,108

35,769

22,306

58,075

27,402

28,470

30,493

18,927

12,818

31,746

2,721

2,607

3,050

2,214

1,049

3,262

12,056

11,966

15,566

14,628

8,439

23,067

Private creditors

63,680

70,927

73,682

62,569

5,035

67,604

London Club1)

63,680

70,927

73,682

62,569

5,035

67,604

300,832

339,992

413,283

594,158

90,658

684,816

Total
Source:
BH Ministry of Finance and Treasury.
Debt incurred before 1992.

1)

2)

Other bilateral includes: Fortis Bank, government of Japan, OPEC, KFW, government of Spain, Export-Import Bank of Korea, Bank Austria, Belgium, Bank for
Labour and Economy (BAWAG) and Raiffaisen Bank.

Annual Report 2013

157

T23: Foreign Debt of BH General Government by Creditors**


- in KM thousand -

Creditor
Public creditors

2007

2008

2009

2010

2011

2012

Undisbursed
as of
2013*

2013*

International and regional organizations


European Investment Bank
European Bank for Reconstr. and Development
World Bank - IDA
World Bank - IBRD5)

233,217

246,090

368,263

537,870

704,579

973,305

1,197,893

630,139

146,090

217,243

357,804

427,819

481,540

623,344

743,616

158,048

1,430,368

1,497,781

1,497,460

1,738,590

1,803,033

1,769,456

1,689,605

127,587

603,121

614,372

569,232

654,872

692,060

675,710

622,817

226,362

European Development Bank

19,435

29,359

31,834

35,843

37,180

36,776

35,180

37,748

International Fund for Agriculture Development

47,873

51,447

56,108

64,100

68,235

70,302

69,067

9,656

3,152

388,705

767,071

784,851

950,444

851,771

EUROFIMA1)

21,779

23,071

13,146

7,839

European Commission

78,233

78,233

78,233

74,322

70,410

62,587

250,346

6,212

7,399

10,295

14,163

14,033

12,690

13,644

55,244

International Monetary Fund

Others2)
Government and government agencies
Saudi Development Fund
Paris Club1)
Japan

25,208

27,188

24,428

24,424

33,780

49,628

66,183

25,907

880,376

879,236

828,455

834,959

825,224

781,672

755,540

48,297

61,947

57,642

69,858

73,248

62,324

48,251

167,475

Kuwait3)

32,908

36,945

29,381

30,829

28,997

27,971

24,824

Others3)4)

125,597

188,865

198,101

316,369

395,378

446,030

468,033

377,417

240,965

230,489

651,298

599,205

541,875

479,306

416,737

Private creditors
London Club1)
Others
Total

18,515

50,727

73,717

90,687

106,621

133,936

151,182

8,090

3,961,347

4,240,392

5,234,102

6,288,820

6,661,044

7,155,480

7,404,689

1,823,673

Source:
BH Ministry of Finance and Treasury database.
Note:
Debt outstanding at the end of fourth quarter (Q4) is debt outstanding at the end of the year. Debt outstanding is calculated by converting the foreign currency in
which each loan is denominated into KM at exchange rates quoted by the CBBH for the given date. As of December 2009, the optional debt of KM 436,524 million
to the London Club has been activated.
Additionally, there are BH state guarantees for the debt of public corporations of KM 11.34 million.
1) Debt incurred before 1992.
2) Including OPEC Fund.
3) Including direct loans to the entity governments.
4) This category includes Austria, Belgium, Hungary, Portugal, Spain, Sweden, Korea, Libya, KFW Agency, Bank for Labour and Economy and Austrian Postal
Saving Bank.
5) Includes old and new debt.
* Preliminary data.
*Data revised in accordance with the update of database on January 24, 2014.

158

Central Bank of Bosnia and Herzegovina

T24: CBBH Foreign Reserves


- end of period, in KM million -

Month

Gold

SDR
holdings

1997

12.

Year

0.0

0.0

CBBH
foreign
reserves
5

Gross foreign reserves


Deposits with
non-resident Other
banks
6
7

6.2

138.0

0.0

Investment
in foreign
securities
8
0.0

Net foreign Monetary


reserves
liabilities
9=3++7
144.1

10
144.1

11
160.3

CBBH net
foreign
assets
12=10-11
-16.1

1998

12.

0.0

0.0

32.7

250.6

0.0

0.0

283.3

283.3

253.9

29.4

1999

12.

0.0

0.0

83.5

782.2

1.3

0.0

867.0

866.9

836.7

30.3

2000

12.

0.0

0.0

38.1

983.2

6.2

0.0

1,027.5

1,027.3

973.2

54.1

2001

12.

0.0

0.0

804.9

1,891.6

11.9

0.0

2,708.4

2,678.4

2,591.6

86.8

2002

12.

0.0

5.9

58.9

2,399.6

19.7

0.0

2,484.1

2,482.9

2,345.2

137.7

2003

12.

0.0

5.3

59.1

2,716.2

12.3

0.0

2,792.9

2,791.9

2,627.7

164.1

2004

12.

0.0

0.7

37.1

3,419.7

21.5

0.0

3,479.0

3,478.0

3,303.6

174.4

2005

12.

0.0

0.5

40.5

4,154.9

28.6

0.0

4,224.5

4,223.5

4,010.1

213.4

2006

12.

0.0

0.6

55.2

4,951.4

51.3

393.3

5,451.7

5,450.7

5,182.6

268.1

2007

12.

0.0

0.4

40.1

5,971.1

80.7

606.2

6,698.5

6,697.6

6,303.9

393.7

2008

12.

0.0

0.4

212.2

4,727.9

49.9

1,305.3

6,295.7

6,294.8

5,727.5

567.3

2009

12.

63.3

5.7

107.4

3,298.0

2.2

2,735.4

6,212.1

6,211.2

5,705.5

505.7

2010

12.

66.9

0.0

102.2

3,000.8

2.7

3,285.1

6,457.7

6,456.3

5,969.6

486.8

2011

12.

151.3

1.1

93.6

4,385.6

0.0

1,792.0

6,423.6

6,422.5

5,915.1

507.4

2012

12.

159.0

4.5

133.2

2,334.5

0.0

3,877.4

6,508.6

6,507.4

5,987.0

520.4

2013

12.

164.1

2.7

91.6

2,217.6

0.0

4,592.3

7,068.3

7,067.3

6,659.2

408.1

2013

01.

230.6

4.4

38.8

1,707.4

0.0

4,347.4

6,328.7

6,327.5

5,850.4

477.1

02.

226.5

2.1

56.4

1,772.8

0.0

4,319.4

6,377.1

6,375.7

5,876.1

499.7

03.

234.2

2.1

74.9

2,253.6

0.0

3,765.7

6,330.6

6,329.4

5,811.8

517.6

04.

211.4

5.5

99.4

2,313.7

0.0

3,748.2

6,378.1

6,376.4

5,885.6

490.7

05.

201.1

3.5

86.2

1,773.7

0.0

4,332.3

6,396.9

6,395.7

5,937.8

457.9

06.

177.0

79.3

50.0

1,735.8

0.0

4,420.4

6,462.5

6,461.4

6,061.5

399.9

07.

186.9

5.4

93.2

1,748.3

0.0

4,550.0

6,583.8

6,581.7

6,151.0

430.7

08.

198.0

3.0

67.0

1,958.7

0.0

4,596.3

6,823.0

6,821.4

6,400.6

420.8

09.

184.0

2.4

92.5

1,725.3

0.0

4,894.5

6,898.8

6,897.6

6,471.1

426.5

10.

180.6

5.2

72.9

1,982.9

0.0

4,633.4

6,875.0

6,873.4

6,429.9

443.5

11.

172.7

2.8

39.8

2,044.3

0.0

4,624.2

6,883.8

6,882.5

6,442.0

440.5

12.

164.1

2.7

91.6

2,217.6

0.0

4,592.3

7,068.3

7,067.3

6,659.2

408.1

Monetary data are updated based on the new methodology from January 2006.
Note:
Gross foreign reserves include balance sheet positions of the CBBH short-term foreign assets (gold, CBBH SDR holdings, foreign exchange in the CBBH vault,
transferable deposits in foreign currency with non-resident banks and other) and investment inforeign securities since July 2006, in accordance with the July
2006 decision of the CBBH Investment Committee. Net foreign reserves represent the difference between gross foreign reserves and liabilities to non-residents.
Monetary liabilities include money outside monetary authorities and deposits of residents with monetary authorities. Net foreign assets of the CBBH represent the
difference between net foreign exchange reserves and monetary liabilities of the CBBH.

Annual Report 2013

159

T25: BH Foreign Trade


- in KM million Year

Month

Exports of goods

Imports of goods

Trade balance

Exports/imports
coverage, in %

5=(3-4)

6=(3/4)x100

1998

1,043

5,120

-4,077

20.4

1999

1,376

6,048

-4,672

22.7

2000

2,265

6,583

-4,318

34.4

2001

2,256

7,331

-5,076

30.8

2002

2,089

8,048

-5,958

26.0

2003

2,323

8,319

-5,996

27.9

2004

2,819

9,306

-6,487

30.3

2005

3,783

11,179

-7,395

33.8

2006

5,164

11,389

-6,224

45.3

2007

5,937

13,898

-7,962

42.7

2008

6,712

16,293

-9,581

41.2

2009

5,530

12,348

-6,818

44.8

2010

7,096

13,616

-6,521

52.1

2011

8,222

15,525

-7,303

53.0

2012

7,858

15,253

-7,395

51.5

2013
2013

8,380

15,170

-6,790

55.2

01.

610

1,030

-420

59.2

02.

646

1,127

-481

57.4

03.

683

1,281

-598

53.3

04.

787

1,275

-488

61.7

05.

740

1,305

-564

56.7

06.

739

1,231

-492

60.0

07.

747

1,329

-582

56.2

08.

630

1,276

-645

49.4

09.

712

1,303

-591

54.6

10.

707

1,425

-718

49.6

11.

710

1,317

-607

53.9

12.

669

1,271

-602

52.6

Note:
Most recent data on imports of goods as per the Special Trade System provided by the BH Agency for Statistics; scope and value adjustments prepared for the BoP
reporting purposes are not included.

160

Central Bank of Bosnia and Herzegovina

T26: BH Exports by Country of Destination


- in KM thousand Year

Month

Germany

Croatia

Serbia*

Italy

Slovenia

Austria

Montenegro

Other
countries

Total

1999

144,235

202,375

244,408

269,301

96,440

62,316

356,544

1,375,619

2000

262,061

173,413

464,820

515,014

150,614

74,194

624,805

2,264,921

2001

328,378

247,278

466,386

412,797

175,634

83,190

541,863

2,255,526

2002

262,698

313,266

421,059

248,396

174,258

83,640

585,839

2,089,156

2003

289,074

406,121

382,257

340,796

249,706

82,094

572,797

2,322,846

2004

268,389

609,975

446,073

492,555

256,498

136,048

609,242

2,818,780

2005

429,036

775,428

587,960

496,275

365,199

163,432

965,951

3,783,280

2006

668,733

965,258

681,764

713,413

629,633

313,807

1,191,688

5,164,296

2007

762,169

1,090,120

770,717

779,102

645,369

369,608

155,707

1,363,793

5,936,584

2008

913,488

1,156,836

942,277

843,065

614,875

415,224

231,444

1,594,482

6,711,690

2009

814,110

944,144

741,441

702,356

463,129

325,370

229,506

1,311,143

5,531,199

2010

1,085,936

1,070,626

894,775

862,022

611,744

470,584

310,180

1,789,638

7,095,505

2011

1,215,957

1,204,440

1,001,879

963,546

706,818

619,042

300,430

2,210,001

8,222,112

2012

1,210,103

1,165,019

710,002

939,241

653,304

654,764

249,230

2,276,299

7,857,962

2013
2013

1,310,844

1,194,637

766,745

1,003,294

686,503

687,565

270,745

2,459,942

8,380,275

01.

109,732

84,593

36,243

79,567

56,917

47,411

13,648

182,220

610,331

02.

105,444

98,694

46,658

74,258

55,522

51,360

18,487

196,010

646,434

03.

104,566

104,058

60,178

73,268

58,057

51,025

27,508

203,983

682,644

04.

118,538

114,627

70,384

88,600

58,899

66,822

26,775

242,031

786,676

05.

103,421

123,018

64,224

82,853

54,807

57,029

23,653

231,341

740,345

06.

110,057

127,852

58,587

88,768

55,859

60,142

23,155

214,633

739,053

07.

114,489

109,967

66,546

104,005

57,821

56,783

28,389

209,245

747,245

08.

107,338

90,605

67,153

58,186

50,737

54,590

25,833

175,837

630,280

09.

117,388

89,865

71,753

98,331

59,656

58,777

19,910

195,877

711,557

10.

114,722

89,145

75,398

84,439

61,692

62,867

19,996

198,260

706,519

11.

117,915

82,339

64,172

91,123

61,362

67,045

19,629

206,481

710,066

12.

87,234

79,876

85,449

79,895

55,174

53,713

23,764

204,022

669,126

Note:
The share of BH exports to a country in the total BH exports in 2010 was used as a criterion for selecting the mode of presentation of a given country of destination.
Therefore, all countries with an export share over 4% of total BH exports for 2010 are presented separately, while other countries are grouped together in the
column Other countries.
Until February 12, 2007 , the data on exports to Serbia and Montenegro were presented as exports to Serbia, and since then exports to Serbia and Montenegro are
presented separately.

Annual Report 2013

161

T27: BH Imports by Country of Origin


- in KM thousand Year

Month

1999

Croatia

Serbia*

Gemany

Italy

Russian
Federation

Slovenia

China

Austria

USA

Hungary

Other
countries

Total

1,020,151

384,395

633,553

978,755

753,158

288,118

296,611

1,693,171

6,047,912

2000

953,134

439,282

805,186

704,214

998,717

368,070

307,729

2,006,271

6,582,603

2001

1,104,538

523,827

772,527

957,233

945,602

416,642

411,652

2,199,407

7,331,428

2002

1,330,043

697,856

998,531

789,764

906,329

463,792

491,428

2,369,838

8,047,581

2003

1,446,124

656,626 1,007,015

852,243

116,439

774,398 132,012

360,981

106,005

510,172

2,356,925

8,318,941

2004

1,633,847

946,962 1,101,218

850,747

218,963

712,071 215,936

396,408

123,417

411,549

2,694,823

9,305,942

2005

1,886,484 1,135,162 1,605,765 1,000,500

322,357

779,943 381,513

488,104

213,567

409,603

2,955,547

11,178,545

2006

1,946,914 1,116,167 1,417,257 1,020,542

254,626

860,684 391,090

456,213

220,622

394,682

3,309,988

11,388,785

2007

2,449,198 1,408,588 1,742,880 1,255,982

277,902

884,579 597,930

535,957

298,658

478,958

3,967,610

13,898,242

2008

2,779,927 1,726,195 1,914,630 1,520,914

344,006

963,337 748,615

606,290

524,553

719,598

4,444,452

16,292,516

2009

1,855,136 1,283,006 1,395,705 1,243,234

865,684

758,953 557,106

455,395

325,140

401,304

3,214,517

12,355,179

2010

2,058,946 1,429,477 1,424,980 1,210,391

1,189,105

808,852 655,539

489,083

485,491

416,780

3,447,593

13,616,238

2011

2,226,507 1,465,645 1,648,403 1,381,687

1,635,091

828,564 774,881

491,679

626,711

379,214

4,067,045

15,525,428

2012

2,202,545 1,431,534 1,725,796 1,429,362

1,493,885

803,360 816,377

504,094

388,173

412,951

4,044,863

15,252,942

1,956,353 1,485,608 1,734,842 1,482,256

1,505,995

754,344 914,082

2013
2013

519,291

384,852

441,535

3,990,634

15,169,793

80,942

114,213

101,393

126,551

55,746

57,604

32,115

39,655

30,960

270,440

1,030,490

129,454

90,227

120,458

102,148

155,156

57,991

65,196

37,862

30,260

35,674

302,632

1,127,058

163,300

113,475

142,488

119,319

149,163

68,334

77,586

48,790

22,390

34,550

341,152

1,280,548

04.

165,717

126,963

150,962

127,585

100,773

68,221

68,838

43,996

35,171

38,492

348,386

1,275,105

05.

182,052

121,037

145,740

136,217

115,905

60,456

73,486

42,165

35,087

40,113

352,554

1,304,812

06.

192,472

122,553

147,243

127,412

60,684

69,337

69,033

45,207

26,367

32,161

338,307

1,230,778

07.

178,070

132,467

151,576

142,561

129,926

68,747

67,953

44,406

26,899

35,725

351,029

1,329,358

08.

190,823

140,498

146,810

99,362

124,784

57,729

75,987

43,832

34,836

33,852

327,151

1,275,664

09.

163,458

136,023

156,052

125,580

111,756

64,200

84,447

41,145

34,502

40,204

345,621

1,302,989

10.

167,375

157,290

151,344

144,732

151,707

68,714

88,229

51,385

39,182

47,544

357,181

1,424,685

11.

147,088

132,286

153,110

129,726

152,421

56,932

96,262

44,222

36,253

41,332

327,666

1,317,299

12.

155,672

131,846

154,845

126,221

127,169

57,937

89,461

44,164

24,251

30,929

328,514

1,271,008

01.

120,872

02.
03.

Note:
The share of BH imports from a country in total BH imports for 2010 was used as a criterion for selecting the mode of presentation of the given country of
origin. Therefore, all countries with a share of imports over 3% of total BH imports for 2010 are separately presented, while the other countries are grouped
together in the column Other countries.
Until February 12, 2007, the data on imports from Serbia also included imports from Montenegro, and from that date the imports from Montenegro are
included in the column Other countries.

162

Central Bank of Bosnia and Herzegovina

T28: Composition of Goods Exports and Imports by Products


- in KM million Exports of goods
Commodity group
Total

Imports of goods

2009

2010

2011

2012

5,531.2

7,095.5

8,222.1

7,858.0

2013

2009

2010

2011

2012

2013

8,380.3 12,355.2 13,616.2 15,525.4 15,252.9 15,169.8

Animals & animal products

90.8

117.8

129.0

134.3

127.5

375.4

371.7

414.6

425.0

442.7

Vegetable products

83.7

119.3

101.7

91.1

128.8

526.0

602.2

681.8

705.8

663.6

Animal or vegetable fats


Prepared foodstuffs

44.3

55.1

58.2

75.9

92.6

111.3

103.3

146.4

171.9

162.3

233.9

260.9

323.3

336.7

324.9

1,376.4

1,425.2

1,527.1

1,513.9

1,482.8

Mineral products

861.7

1,215.7

1,316.0

872.0

1,091.9

1,999.3

2,743.9

3,456.7

3,229.0

3,045.2

Chemical products

333.5

488.7

570.6

533.2

531.6

1,260.6

1,345.7

1,475.5

1,522.5

1,475.4

Plastic and rubber products

116.4

132.5

166.0

202.7

229.0

648.1

725.1

800.4

846.8

858.8

Hides and skin


Wood & wood products

66.2

107.8

178.9

179.8

170.8

200.0

298.0

382.1

397.8

426.1

393.6

424.2

504.4

507.4

579.5

150.5

154.3

168.2

158.0

165.3

Paper & pulp products

156.8

205.9

234.9

224.7

233.5

356.6

372.1

398.4

353.3

352.3

Textile & textile articles

323.5

316.0

353.1

332.2

371.4

664.9

708.1

754.9

734.7

827.3

Footwear, headwear and related products

345.9

412.4

461.4

476.3

557.2

212.7

226.4

252.1

251.1

276.7

73.1

51.8

49.3

49.0

52.3

285.1

283.6

296.9

284.3

280.8

1.8

3.8

12.1

19.7

36.2

11.1

12.2

14.2

11.5

12.5

1,047.2

1,609.0

1,934.6

1,908.8

1,753.9

1,075.0

1,209.2

1,384.0

1,330.1

1,399.8

Articles of stone, plaster, cement and related


materials, ceramic products, glass and glassware
Pearls, precious metals and articles thereof, prec. or
semi-prec. stones
Base metals & articles of base metals
Machinery & mechanical appliances

618.8

696.3

815.1

791.3

859.6

1,840.2

1,764.4

1,870.2

1,881.1

1,866.6

Transportation equipment

139.9

154.0

189.0

203.0

260.4

804.7

755.5

1,053.7

909.9

936.7

21.9

16.3

19.0

19.5

17.1

182.9

242.1

191.7

211.7

181.2

40.5

29.5

44.5

79.0

63.5

5.3

6.2

3.7

4.5

7.9

Clocks and watches, measurement, musical and


medical instruments
Arms and ammunition; parts and accessories
thereof

537.5

678.2

760.1

821.2

898.5

268.3

266.2

251.3

309.5

305.0

Works of art, collectors' pieces and antiques

Miscellaneous manufactured articles

0.2

0.3

0.8

0.0

0.2

0.4

0.7

1.3

0.5

0.5

Unclassified

0.0

0.0

0.0

0.0

0.0

0.2

0.1

0.1

0.0

0.0

Note:
- The source of this data is the Agency for Statistics of Bosnia and Herzegovina.
- The data on exports and imports of goods are classified in accordance with World Trade Organizations Harmonized System codes.

Annual Report 2013

163

T29: Average Exchange Rates of Convertible Mark

Year

Month

Country

EMU

Croatia

Hungary

Slovenia

Switzerland

UK

USA

Serbia

abbr.

EUR

HRK

HUF

SIT

CHF

GBP

USD

RSD

100

100

unit

1998

1.972018

1999
2000

100

100

1.060839

1.214705

2.918182

1.761376

1.955830

0.718689

1.009530

1.222682

2.967027

1.834282

1.955830

25.617210

0.752855

0.949208

1.255752

3.206893

2.118857

2001

1.955830

26.193657

0.762688

0.897501

1.295163

3.146578

2.185558

2002

1.955830

26.407764

0.805188

0.865838

1.333166

3.112649

2.076755

3.206892

2003

1.955830

25.863222

0.772566

0.836523

1.286932

2.829742

1.733531

3.009441

2004

1.955830

26.100232

0.777071

0.818152

1.266918

2.883133

1.575463

2.699271

2005

1.955830

26.422917

0.788640

0.816393

1.263147

2.859614

1.572843

2.360525

2006

1.955830

26.703006

0.741214

0.816303

1.243337

2.869188

1.559433

2.327066

2007

1.955830

26.653716

0.778418

1.190857

2.858739

1.429542

2.446287

2008

1.955830

27.072193

0.778567

1.233196

2.462700

1.336615

2.406718

2009

1.955830

26.641714

0.698858

1.295257

2.195821

1.406763

2.083674

2010

1.955830

26.836049

0.710646

1.417637

2.280434

1.476950

1.903300

2011

1.955830

26.296474

0.702511

1.589068

2.253721

1.406117

1.918824

2012

1.955830

26.003868

0.676389

1.622699

2.412276

1.522668

1.732491

2013

1.955830

25.806786

0.658705

1.589326

2.304432

1.473557

1.729721

01.

1.955830

25.828355

0.665038

1.594163

2.355804

1.474438

1.743900

02.

1.955830

25.778833

0.668659

1.589644

2.272005

1.461881

1.756109

03.

1.955830

25.766416

0.646836

1.594919

2.274604

1.507336

1.750906

04.

1.955830

25.712907

0.654057

1.603709

2.301129

1.503404

1.753253

05.

1.955830

25.829888

0.667836

1.577270

2.306142

1.506641

1.764971

06.

1.955830

26.091734

0.661603

1.587087

2.294829

1.484216

1.718302

07.

1.955830

26.056202

0.663567

1.581829

2.271152

1.496302

1.716600

08.

1.955830

25.956680

0.653083

1.584897

2.274122

1.469414

1.715588

09.

1.955830

25.747749

0.652070

1.585091

2.321162

1.466331

1.706297

10.

1.955830

25.671395

0.663312

1.588367

2.309195

1.434413

1.712585

11.

1.955830

25.628888

0.657478

1.587965

2.332937

1.449439

1.714710

12.

1.955830

25.608206

0.651577

1.597210

2.338001

1.428040

1.705133

2013

164

Central Bank of Bosnia and Herzegovina

Net surplus /
deficit

Brko

Net
acquisition of
nonfinancial
assets

RS

Consolidated
expenses

FBH

BH
Institutions

Consolidated
revenues

RS

2003

270.7

3,889.1

1,853.5

199.9

6,021.0

254.6

3,706.7

1,749.7

161.8

5.680,4

237.9

102.6

2004

334.9

4,163.0

1,853.7

206.1

6,380.2

295.5

3,877.5

1,743.9

157.3

5,896.7

229.5

253.9

2005

472.5

4,488.3

2,078.5

178.7

7,122.1

399.5

4,082.6

1,810.8

162.6

6,359.5

351.8

410.8

2006

801.8

5,177.2

2,525.6

201.0

8,586.4

713.3

4,590.0

2,187.5

174.3

7,546.0

489.6

550.9

2007

885.0

5,901.0

2,919.1

241.5

9,832.7

753.9

5,532.4

2,458.9

197.5

8,828.8

745.8

258.1

2008

980.7

6,537.5

3,264.5

236.6

10,903.1

876.4

6,651.2

3,003.7

184.5

10,599.6

842.8

-539.3

2009

1,086.6

6,074.6

3,080.3

210.9

10,342.5

975.5

6,292.4

3,316.6

189.9

10,664.5

748.0

-1,070.0

2010

1,009.8

6,474.1

3,234.6

235.7

10,862.6

996.5

6,324.5

3,410.6

200.4

10,840.3

634.2

-611.9

2011

968.6

6,571.2

3,685.6

237.4

11,357.1

983.6

6,449.7

3,372.1

209.1

10,908.7

771.1

-322.7

2012

1,045.6

6,642.8

3,652.6

246.1

11,459.5

952.9

6,595.9

3,534.1

215.5

11,170.8

815.7

-526.9

Q3

227.6

1,558.5

785.4

57.1

2,608.7

244.0

1,442.6

729.9

46.1

2,442.8

34.3

131.6

Q4

276.2

1,509.3

865.1

78.5

2,692.5

277.7

1,718.0

789.2

78.7

2,826.9

144.8

-279.2

Q1

207.6

1,320.0

669.7

49.7

2,230.2

208.6

1,348.7

664.7

36.4

2,241.7

28.8

-40.3

Q2

292.0

1,476.0

759.0

54.5

2,544.9

239.5

1,446.2

743.6

45.1

2,437.8

31.4

75.6

Q3

254.6

1,555.1

760.7

76.0

2,605.9

244.4

1,483.1

723.5

63.7

2,474.3

42.9

88.7

Q4

291.4

1,550.2

830.9

65.9

2,704.6

260.4

1,737.9

898.3

70.2

2,933.1

86.7

-315.2

Q1

223.3

1,308.9

636.9

47.1

2,200.2

211.7

1,349.8

659.6

40.8

2,245.9

20.5

-66.2

Q2

288.1

1,533.2

764.2

64.3

2,620.6

233.4

1,448.7

701.4

57.8

2,412.0

32.8

175.7

Q3

241.1

1,494.2

761.6

61.6

2,542.2

220.5

1,425.0

731.2

59.0

2,419.5

49.4

73.3

2011
2012

2013

Brko

FBH

BH
Institutions

T30: BH Government Finances - Government Sector Units


- in KM million -

Note:
Administrative data collected from: Ministries of Finance of all levels of governement, Social Security Funds of all levels of government, Entities Public Companies
for Roads and Public Companies for Motorways . Annual data for consolidated revenues/expenses include local level of government (municipalities and towns),
Public Companies for Roads of all levels of government of FBH, PC for Roads of RS, PC for Motorways of FBH and PC for Motorways of RS, while quarterly data
do not include them as the source data are not available. Difference between revenues on one side and expenses with net acquisition of non-financial assets on the
other side, represents net surplus/deficit.

Annual Report 2013

165

Net acquisition
of nonfinancial
assets

Consolidated
expenses

Grants and
other expenses

Social
benefits

Subsidies

Interest

Use of goods
and services

Employee
compensations

Consolidated
revenues

Grants and other


revenues

Social
contributions

Taxes

T31: BH Government Finances - Structure of Consolidated Revenues and Expenditures


- in KM million -

2003

3,223.6

1,877.8

919.6

6,021.0

1,783.5

1,518.4

107.2

154.8

1,749.7

366.7

5,680.4

237.9

2004

3,401.8

2,002.8

975.5

6,380.2

1,776.2

1,414.8

84.4

184.4

1,965.4

471.4

5,896.7

229.5

2005

4,002.4

2,100.6

1,019.1

7,122.1

1,834.7

1,601.4

96.4

217.0

2,212.2

397.8

6,359.5

351.8

2006

4,947.1

2,536.2

1,103.1

8,586.4

2,222.7

1,986.0

108.0

310.4

2,426.5

492.4

7,546.0

489.6

2007

5,536.5

2,908.9

1,387.3

9,832.7

2,534.7

2,220.9

110.8

378.2

3,030.6

553.5

8,828.8

745.8

2008

5,946.3

3,568.7

1,388.1

10,903.1

3,022.3

2,462.0

123.6

439.6

3,945.1

607.0

10,599.6

842.8

2009

5,351.9

3,638.6

1,352.0

10,342.5

3,155.2

2,489.4

123.9

418.5

3,951.0

526.5

10,664.5

748.0

2010

5,640.2

3,813.0

1,409.4

10,862.6

3,169.8

2,593.1

122.7

476.6

3,770.3

707.8

10,840.3

634.2

2011

6,032.2

4,036.4

1,288.5

11,357.1

3,336.9

2,088.2

161.4

402.8

4,330.3

589.1

10,908.7

771.1

2012
2011
2012

2013

6,037.9

4,046.6

1,375.0

11,459.5

3,323.8

2,156.4

200.6

416.1

4,394.4

679.5

11,170.8

815.7

Q3

1,342.3

1,034.3

232.1

2,608.7

712.3

400.5

37.0

116.9

1,091.1

84.9

2,442.8

34.3

Q4

1,390.5

1,106.5

195.5

2,692.5

712.5

533.9

43.1

155.4

1,094.6

287.5

2,826.9

144.8

Q1

1,132.0

931.4

166.9

2,230.2

702.6

367.7

34.2

32.3

1,028.2

76.7

2,241.7

28.8

Q2

1,279.5

1,021.9

243.4

2,544.9

704.3

429.3

52.4

52.0

1,048.0

151.8

2,437.8

31.4

Q3

1,359.3

1,007.0

239.7

2,605.9

697.5

397.7

36.4

109.0

1,091.2

142.4

2,474.3

42.9

Q4

1,438.7

1,086.4

179.6

2,704.6

731.7

521.0

51.8

175.4

1,138.8

314.4

2,933.1

86.7

Q1

1,110.3

930.9

159.1

2,200.2

685.5

381.5

30.1

25.5

1,035.8

87.6

2,245.9

20.5

Q2

1,327.2

1,019.2

274.2

2,620.6

697.2

420.7

58.1

58.2

1,068.2

109.7

2,412.0

32.8

Q3

1,320.1

1,035.1

187.0

2,542.2

690.2

407.4

33.3

86.0

1,059.5

143.1

2,419.5

49.4

Note:
Administrative data collected from: Ministries of Finance of all levels of government, Social Security Funds of all levels of government, Entities Public Companies
for Roads and Public Companies for Motorways. Annual data for consolidated revenues/expenses include local level of government (municipalities and towns),
Public Companies for Roads of all levels of government of FBH, PC for Roads of RS, PC for Motorways of FBH and PC for Motorways of RS, while quarterly data
do not include them as the source data are not available. Difference between revenues on one side and expenses with net acquisition of non-financial assets on the
other side represents net surplus/deficit.

166

Central Bank of Bosnia and Herzegovina

2003

1,011.3

1,367.6

1,244.4

3,889.1

992.1

1,315.5

1,163.6

3,706.7

92.3

Net surplus /
deficit

Net acquisition
of nonfinancial
assets

Consolidated
expenses

Cantons

Social security
funds

Federation BH
budget

Consolidated
revenues

Cantons

Social security
funds

Federation BH
budget

T32: FBH Government Finance - Government Sector Units


- in KM million -

90.2

2004

1,052.0

1,530.4

1,299.8

4,163.0

988.6

1,452.6

1,205.5

3,877.5

127.6

157.8

2005

1,120.9

1,659.6

1,367.3

4,488.3

912.5

1,593.8

1,332.3

4,082.6

118.3

287.4

2006

1,157.1

1,843.9

1,722.9

5,177.2

846.3

1,816.2

1,566.9

4,590.0

198.4

388.9

2007

1,319.8

2,265.9

1,895.9

5,901.0

1,254.3

2,216.5

1,815.0

5,532.4

248.1

120.5

2008

1,296.9

2,764.6

2,032.6

6,537.5

1,574.1

2,729.4

2,027.8

6,651.2

397.4

-511.1

2009

1,205.3

2,739.7

1,788.5

6,074.6

1,357.1

2,812.4

1,865.0

6,292.4

300.7

-518.5

2010

1,398.7

2,875.2

1,854.8

6,474.1

1,325.5

2,859.8

1,894.5

6,324.5

281.3

-131.7

2011

1,321.6

2,924.0

1,903.6

6,571.2

1,318.7

2,990.4

1,897.4

6,449.7

338.8

-217.3

2012

1,416.5

2,986.2

1,830.7

6,642.8

1,378.5

3,031.6

1,936.2

6,595.9

442.5

-395.5

2011
2012

2013

Q3

388.1

736.5

507.7

1,558.5

327.7

748.3

440.4

1,442.6

11.3

104.6

Q4

348.3

775.7

458.3

1,509.3

442.1

794.9

554.0

1,718.0

37.4

-246.1

Q1

291.7

688.2

401.5

1,320.0

255.1

742.8

412.2

1,348.7

8.1

-36.8

Q2

351.1

737.3

448.8

1,476.0

306.4

749.9

451.1

1,446.2

11.0

18.9

Q3

382.8

768.6

489.4

1,555.1

353.2

757.1

458.6

1,483.1

12.3

59.7

Q4

390.9

786.8

442.2

1,550.2

463.8

776.6

567.2

1,737.9

26.8

-214.5

Q1

276.9

706.4

386.8

1,308.9

267.4

746.0

397.6

1,349.8

3.3

-44.2

Q2

436.3

735.9

426.3

1,533.2

300.6

762.6

450.7

1,448.7

6.2

78.4

Q3

352.1

759.0

457.3

1,494.2

322.8

742.4

434.0

1,425.0

10.1

59.0

Note:
Administrative data collected from: Ministries of Finance, Social Security Funds of all levels of government of FBH, Public Companies of Roads of all levels
of government of FBH and Public Company of Motorways of FBH. Annual data for consolidated revenues/expenses include the local level of government
(municipalities and towns), PC of Roads of all levels of government of FBH and PC of Motorways of FBH, while quarterly data do not include them as the
source data are not available. Difference between revenues on one side and expenses with net acquisition of non-financial assets on the other side represents
net surplus/deficit.

Annual Report 2013

167

Net surplus /
deficit

Net acquisition
of nonfinancial
assets

Consolidated
expenses

Social security
funds

Republika Srpska
budget

Consolidated
revenues

Social security
funds

Republika Srpska
budget

T33: RS Government Finances - Government Sector Units


- in KM million -

2003

1,001.5

561.9

1,853.5

904.2

596.3

1,749.7

77.7

26.1

2004

981.2

653.0

1,853.7

922.0

653.6

1,743.9

75.8

34.0

2005

1,034.0

713.5

2,078.5

912.4

720.7

1,810.8

169.4

98.3

2006

1,211.3

950.2

2,525.6

1,049.1

944.1

2,187.5

212.0

126.2

2007

1,419.8

1,030.3

2,919.1

1,324.0

1,013.1

2,458.9

433.5

26.7

2008

1,547.1

1,348.9

3,264.5

1,602.6

1,313.9

3,003.7

329.4

-68.5

2009

1,349.4

1,377.9

3,080.3

1,676.0

1,517.4

3,316.6

310.0

-546.3

2010

1,422.8

1,488.1

3,234.6

1,676.3

1,552.0

3,410.6

241.8

-417.7

2011

1,656.4

1,573.7

3,685.6

1,628.8

1,497.8

3,372.1

372.6

-59.1

2012

1,666.5

1,566.5

3,652.6

1,647.9

1,595.1

3,534.1

307.7

-189.2

Q3

422.3

389.6

785.4

365.7

390.7

729.9

9.6

45.8

Q4

466.4

448.5

865.1

511.2

327.7

789.2

73.0

2.9

Q1

360.1

359.6

669.7

338.7

376.0

664.7

15.9

-11.0

Q2

415.7

393.9

759.0

391.4

402.8

743.6

13.5

1.8

Q3

428.9

382.3

760.7

370.1

403.8

723.5

16.2

21.0

Q4

461.8

427.1

830.9

547.7

408.6

898.3

20.6

-88.0

Q1

346.7

340.1

636.9

317.6

391.9

659.6

9.0

-31.7

Q2

419.6

405.7

764.2

352.3

410.2

701.4

12.5

50.3

Q3

419.6

397.5

761.6

390.4

396.3

731.2

15.8

14.6

2011
2012

2013

Note:
Administrative data collected from: Ministry of Finance, Social Security Funds in RS, PC RS Roads and PC RS Motorways. Annual data for consolidated revenues/
expenses include local level of authorities (municipalities and towns), PC RS Roads and PC RS Motorways, while quarterly data do not include them as the source
data are not available. Difference between revenues on one side, and expenses with net acquisition of non-financial assets on the other side represents net surplus/
deficit.

168

Central Bank of Bosnia and Herzegovina

Jan - Dec 2004*

168

24

108

30

63

72

12

314

Total

Other countries

Turkey

Switzerland

Serbia**

Slovenia

Russia

Germany

Italy

Croatia

Netherlands

Austria

Year

T34: Foreign Direct Investment Flows to BH, Classified by Country of Origin of Foreign Investor
- in KM million -

805

Jan - Dec 2005*

158

30

82

26

24

110

39

22

17

45

552

Jan - Dec 2006*

235

41

182

42

37

116

39

56

48

70

865

Jan - Dec 2007*

292

29

161

23

17

333

133

1,351

66

-1

196

2,600

Jan - Dec 2008*

243

36

103

48

29

339

210

213

41

70

1,337

Jan - Dec 2009*

80

-17

125

-9

129

59

-122

18

82

352

Jan - Dec 2010*

60

48

85

17

34

89

-23

41

84

46

119

600

Jan - Dec 2011*

138

16

29

36

140

62

101

-6

37

131

694

Jan - Dec 2012*

132

118

14

40

153

-55

-1

-5

152

558

Note:
Foreign direct investment (flows and stocks) are compiled in accordance with the most recent methodological standards and instructions of the International
Monetary Fund (IMF) and Organization for Economic Cooperation and Development (OECD). The detailed methodological approach to compilation and
dissemination of Foreign Direct Investment is presented in the IMF Balance of Payments Manual, sixth edition and the OECD Benchmark Definition of Foreign
Direct Investment, fourth edition. Implementation of the new methodology resulted in the following changes:
- treatment of inter-company loans and other liabilities for financial intermediaries (transactions within this category, other capital withdrawals and repayments
of this type of debt are excluded from Foreign Direct Investment, and are now included in the category of Other Investment);
- recording of dividends (dividends are recorded for the period when they are paid out, and not for the period when they were earned as it had been the case in
accordance with the previous methodology);
- investment of related companies are included as foreign direct investment in the Other capital category, while for the BoP purposes these investments are now
excluded from other investment. (Companies from different economies are related companies if both have the same foreign direct investor usually from a third
economy or from the economy where the related company is based).
In accordance with these methodological changes, the 2004-2009 data series were also revised.
* Includes the value of reinvested earnings, which is only collected on the annual basis.
** Since 2007, data includes FDI from Serbia, while prior to 2007, the data included FDI from Serbia and Montenegro.
... in this industry/country there are less than three companies that received foreign direct investment and, in accordance with statistical standards, we are not
permitted to publish the investment data.

Annual Report 2013

169

Jan - Dec 2004*

52

21

21

Jan - Dec 2005*

64

27

Jan - Dec 2006*

121

58

Jan - Dec 2007*

110

15

316

Jan - Dec 2008*

25

14

215

Jan - Dec 2009*

55

-9

46

Jan - Dec 2010*

-17

-4

34

Jan - Dec 2011*

22

11

44

Jan - Dec 2012*

34

16

260

23

110

14

-2

18

49

35

13

133

17

19

93

37

21

52

18

-128

-28

33

48

16

-8

30

13

127

44

13

65

30

11

121

15

174

113

15

162

-8

94

-25

-5

-30

Total

Other industries

Real estate activities

Financial intermediation, except insurance and pension


funding

Post and telecommunications

Retail trade, except of motor vehicles and motorcycles,


repair of personal and household goods

Wholesale trade and commission trade, except of motor


vehicles and motorcycles

Manufacture of motor vehicles, trailers and semi-trailers

Manufacture of base metals

Manufacture of other non-metallic mineral products

Manufacture of chemicals and chemical products

Manufacture of coke, refined petroleum products and


nuclear fuel

Manufacture of wood and of products of wood and cork,


except furniture, manufacture of articles of straw and
plaiting matererials

Manufacture of food products and beverages

Year

T35: Foreign Direct Investment Flows to BH, Classified by Industry


- in KM million -

171

805

177

185

552

283

24

170

865

1,317

267

41

244

2,600

164

222

27

213

1,337

20

-30

73

-22

99

352

23

-10

48

32

355

600

132

35

11

165

103

194

694

130

58

131

-2

171

558

Note:
Foreign Direct Investment (flows and stocks) are compiled in accordance with the most recent methodological standards and instructions of the International
Monetary Fund (IMF) and Organization for Economic Cooperation and Development (OECD). The detailed methodological approach to compilation and
dissemination of Foreign Direct Investment is presented in the IMF Balance of Payments Manual, sixth edition and the OECD Benchmark Definition of Foreign
Direct Investment, fourth edition. Implementation of the new methodology resulted in the following changes:
- treatment of inter-company loans and other liabilities for financial intermediaries (transactions within this category, other capital withdrawals and repayments
of this type of debt are excluded from Foreign Direct Investment, and are now included in the category of other investment);
- recording of dividends (dividends are recorded for the period when they are paid out, and not for the period when they were earned as it had been the case in
accordance with the previous methodology);
- investment of related companies are included as foreign direct investment in the Other capital category, while for the BOP purposes these investments are now
excluded from Other investment. (Companies from different economies are related companies if both have the same foreign direct investor usually from a third
economy or from the economy where the related company is based).
In accordance with these methodological changes, the 2004-2009 data series were also revised.
* Includes the value of reinvested earnings, which is only collected on the annual basis.
... in this industry/country there are less than three companies that received foreign direct investment and, in accordance with statistical standards, we are not
permitted to publish the investment data

170

Central Bank of Bosnia and Herzegovina

36: International Investment Position (IIP)


- in KM million ASSETS

Financial derivative

2005

-5,964.8

7,605.3

114.4

2006
2007

-5,723.7

9,627.5

-7,641.7

12,485.7

2008

-11,504.3

2009

-13,611.8

2010
2011
2012

9=10+11
+12+13

Reserve assets

Portfolio investment
abroad

Other assets

Debt instruments

4=5+6

Trade credits and


advances

Equity and
investment fund
shares

3=4+7+8+9+14

Loans

Total

2=3-15

Currency and
deposits

Total Assets

Total

Net IIP

Other investment

Year

Direct investment
abroad

10

11

12

13

14

75.0

39.4

9.7

0.0

3,192.5

2,814.1

0.0

368.7

9.7

4,288.6

245.5

79.3

166.2

21.5

0.0

3,837.6

3,182.0

130.2

461.9

63.4

5,522.8

340.6

110.5

230.1

16.3

0.0

5,355.2

4,329.5

194.3

749.8

81.7

6,773.6

12,420.3

398.8

126.0

272.9

33.6

0.0

5,612.7

4,165.0

188.3

1,164.9

94.5

6,375.2

12,129.7

250.9

124.0

126.9

304.1

0.0

5,334.6

3,753.6

196.4

1,277.0

107.6

6,240.0

-14,283.1

11,776.4

321.7

186.3

135.4

425.1

0.0

4,543.9

3,145.1

230.6

1,076.3

91.9

6,485.6

-15,183.6

11,608.5

331.5

186.8

144.7

412.9

0.0

4,412.7

2,967.6

139.8

1,154.1

151.1

6,451.5

-15,804.9

11,515.7

300.8

186.8

114.0

418.5

0.0

4,259.9

2,751.6

142.9

1,182.1

183.3

6,536.5

Note:
International investment position for BH is compiled in accordance with the latest International Monetary Fund Methodology for compilation of balance of
payments and international investment position statistics, sixth edition (BPM6).

Annual Report 2013

171

36: International Investment Position (IIP)


- in KM million LIABILITIES
Direct investment abroad

2005

Total Liabilities

Total

Equity and
investment fund
shares

Debt instruments

Portfolio investment
in BH

Financial derivatives

Total

Currency and
deposits

Loans

Trade credits and


advances

Other liabilities

Other investment

15=16+19+20+21

16=17+18

17

18

19

20

21=22+23+24+25

22

23

24

25

13,570.0

3,846.0

3,296.2

549.8

256.7

0.0

9,467.3

1,904.1

6,670.2

691.6

201.4

2006

15,351.2

4,911.2

4,217.5

693.7

251.5

0.0

10,188.5

2,137.2

7,048.4

769.2

233.7

2007

20,127.4

7,380.4

6,484.5

895.9

244.2

0.0

12,502.8

2,674.5

8,740.6

823.0

264.7

2008

23,924.6

8,817.2

7,289.8

1,527.4

231.2

0.0

14,876.3

3,338.1

10,167.0

1,101.0

270.2

2009

25,741.5

9,512.6

7,467.5

2,045.2

651.8

0.0

15,577.1

3,227.8

10,159.9

1,564.9

624.4

2010

26,059.5

9,878.3

7,408.0

2,470.3

599.7

0.0

15,581.5

2,619.6

10,420.5

1,968.6

572.9

2011

26,792.1

10,749.2

7,768.5

2,980.7

542.3

0.0

15,500.6

2,136.8

10,700.9

2,093.1

569.8

2012

27,320.6

11,049.6

7,843.1

3,206.4

479.7

0.0

15,791.3

2,053.4

11,008.2

2,196.2

533.5

Note:
International investment position for BH is compiled in accordance with the latest International Monetary Fund Methodology for compilation of balance of
payments and international investment position statistics, sixth edition (BPM6).

172

Central Bank of Bosnia and Herzegovina

T37: Nominal and Real Effective Exchange Rate of Convertible Mark


Year

Month

NEER

REER

2005

99.99

100.01

2006

100.20

102.33

2007

99.64

99.82

2008

99.98

101.30

2009

104.15

102.66

2010

103.73

101.85

2011

104.64

101.90

2012

105.37

101.20

2013

106.60

99.68

2013

01.

105.75

101.14

02.

105.91

100.75

03.

105.62

99.97

04.

105.82

99.36

05.

105.53

98.92

06.

106.43

99.69

07.

106.60

99.32

08.

107.08

99.15

09.

107.33

99.12

10.

107.46

99.39

11.

107.56

99.63

12.

108.15

99.69

Note:
Revised REER and NEER data are enclosed, their revision was done due to the changes in the methodology for their calculation.
In the calculation of NEER there has been a change in weights, and in the exchange rate of KM. According to the new methodology, weight is calculated on the
sum of the total trade for three consecutive years (for the years 2005, 2006 and 2007 - the weight is calculated on the sum of total trade from 2005 to 2007, for 2008,
2009 and 2010, the sum of the total trade in 2008 - 2010. and for 2011, 2012 and 2013, it is calculated by using the values 2011 2013). Also, according to new
methodology, exchange rate is expressed as the number of units of foreign currency per one KM.
In the calculation of REER, apart from above changes that are related to REER also, there was a change in expressing CPI index, where the price index is set
inversely.
The index created on the basis of twenty trade partners (Austria, Czech Republic, France, Germany, Hungary, Italy, Lithuania, Netherlands, Poland, Slovenia,
Croatia, China, United Kingdom, FYR Macedonia, Romania, Russian Federation, USA, Serbia and Montenegro - since 2007. only Serbia is observed, Switzerland
and Turkey).

Annual Report 2013

173

Note:
Revised data for the periods: January 2008 March 2009 and December 2011 August 2012 due to reclassification of financial instruments with one bank in FBH.
Due to the application of International Accounting Standards (IAS) and the International Financial Reporting Standards applied in BH Federation banks and the
transfer of money flows in December 2011 data, the following changes have occurred at the assets side: Decrease of loans by KM 155 million, an increase in other
assets by KM 10 million, at the liabilities side: decrease of liabilities to non-residents in the amount of KM 624 million, an increase in loan losses provisioning by
KM 472 million and other liabilities increased by KM 7 million.
By order of the FBH Banking Agency, in June 2010, one bank made a reclassification of about KM 300 million claims based on securities of domestic institutional
sector to the claims on nonresidents. In December 2010, the same bank made this reclassification retroactive in the respective amounts for the period from August
2009 when the error occurred, until May 2010. The above reclassification reflects an increase in foreign assets and decrease in other items net.
One bank from FBH made a reclassification of financial instruments in the foreign assets amounting to about KM 40 million for the period January - August 2010.
Claims on loans to non-residents were reclassified in foreign securities of non-residents, which resulted in changes in the short term and long term foreign assets.
By order of the Banking Agency of Republika Srpska, one bank made a reclassification of financial instruments on the liabilities side, for the period of September
2008- November 2010, i.e. the decrease in time and savings deposits of non-bank financial institutions and government sector, and the increase in loans from the
same sectors, respectively in such amounts, per month, ranging from KM 50-150 million.
In accordance with new regulations of the RS Banking Agency, published in the Official Gazette of RS, no.136/10, which provides a new manner of recording
receivables classified in category E, accounting and bookkeeping of recording interest on non-performing assets and calculation of provisions for loan losses,
RS banks implemented mentioned regulations in the data for December 2010, and the transfer of these items from off-balance records into balance sheet. The
correction is reflected on the assets side, as increase of loans in the amount of about KM 144 million, and increase of accrued interest of approximately KM 36
million, and on the liabilities side, as increase in provisioning for loan losses amounting to about KM 180 million on the capital account.

174

Central Bank of Bosnia and Herzegovina

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