Nezavisne novine: The European Union has yesterday approved 39 million Euros worth packet of financial assistance for BiH for overcoming the consequences of financial crisis. The European Commission Delegation in BiH has informed that the approved non-returnable funds will be used for financing big infrastructural projects.
"The European Commission has adopted the program, whose goal is to assist BiH in moderating the consequences of financial and economic crisis. All 39 million Euros of non-returnable funds will be directed to a support of development of middle and small companies, development of infrastructure in the areas of transport, and energetic and environment protection. Funds will also be assigned to the Deposit Insurance Agency of BiH, in order to stop the drain of deposits due to financial crisis", has been stated in the announcement of the European Commission.
The Council of Ministers of BiH has in March this year selected the projects, which will be financed by these funds. Allocation of 16.5 million Euros from the Pre-Accession Assistance of the EU for 2009, for building aqueducts and canalization systems in 17 towns and municipalities in BiH, has been approved. Selected projects imply building the aqueducts and canalization network in Bijeljina, Banja Luka, Zenica, Zavidovići, Visoko, Olovo, Usora, Doboj Jug, Doboj Istok, Posušje, Široki Brijeg, Mostar, Velika Kladuša, Bosanski Petrovac, Bosanska Krupa, Orašje and Tomislavgrad. Projects of renovation of railways, signalization on railways and building the terminals for highways will be financed with 14 million Euros.
Besides the mentioned, funds of the EU will also finance increasing available hydro-potential of the HE Doboj with around 5.5 million Euros, while four million Euros will be spent for assistance to small and middle companies. The EU will in this year donate to BiH around 80 million KM of assistance from the Pre-Accession Assistance. A half of it relates to the infrastructural projects, and a half to building the institutions and reforms. The European Commission points out that, besides the approved 39 million Euros of non-returnable assistance, the European Investment Bank, the European Bank for Renovation and Development, and the KfW fond will ensure convenient credits for infrastructural projects in BiH. These institutions, according to the announcements, might ensure up to 260 million Euros of credits for BiH.
"We must analyze well if we really need those credits, because now we have huge approved, but not withdrawn funds. Our external debt has significantly increased in last two-three years. We need to see if we need that money before we start using the funds, which exceed a billion and a half of KM, and for whose non-usage we pay the penalties", has been said by Fuad Kasumović, Deputy Minister of Finance of BiH.