The Central Bank of Bosnia and Herzegovina announced today its decision to release additional funds of approximately 189 million euros, which are intended to ensure the liquidity of commercial banks in the country.
By the decision of the Governing Council of the Central Bank of BiH, effective January 1, 2009, differentiated reserve requirement rates on deposits of commercial banks will come into force, and it is anticipated that an additional 370 million convertible marks (approximately 189 million euros) will be released in this manner. According to this decision, the reserve requirement rate on deposits that are included in the base for calculating the reserve requirement with a maturity of up to one year remains at 14 percent, while for deposits with longer maturities it is reduced to 10 percent. The statement from the Central Bank of BiH emphasizes that the liquidity of commercial banks in the country has already been at a satisfactory level, and the decision on the differentiated reserve requirement rate was made to encourage greater credit activity in the country, particularly in terms of strengthening the economy. (H)
