Bosnia’s Central Bank Registers €19.5 Million Profit In 2005

The governing board of the Central Bank of BiH has adopted on its session, held on March 31, according to financial statements for 2005 and a decision on distribution of the bank’s net profit, announced from the CBBH press office.

The governing board of the Central Bank of BiH has adopted on its session, held on March 31, according to financial statements for 2005 and a decision on distribution of the bank’s net profit, announced from the CBBH press office. According to the released information, CBBH registered a total of KM38.1 million (€19.5 million) net profit in 2005, out of which KM19.7 million will be transferred to the state budget, while the remaining part will be used for increasing the CBBH general reserves by purchase of monetary gold. CBBH will perform the purchase by medium price of gold by applying the middle exchange rate of USD on the day of transaction, which is the day of signing of the contract between CBBH and the BiH finance ministry. The current price of gold is around 583 USD (KM 360.5) per ounce. Moreover, the board members endorsed a decision on establishing of a central registry of loans of business entities in BiH, having loans in commercial banks. The users of this registry will be CBBH, the banking agencies and the banks. We recall that the U.S. Agency for International Development has helped establish the registry, providing some 60% of the needed funds. The registry will become operational on April 13.