September 7, 2010

EU EXPRO II - Project aimed at support to BiH export launched yesterday

EU EXPRO II is financed by the European Union with a budget of €1.4 million and will be implemented by the UK consulting company WYG International Limited. The project aims to help increase the volumes of BiH exports and improve the balance of trade.

„This project consists of three components, the first is the creation of export strategies and assistance to the Ministry of Foreign Trade and Economic Relations BiH and Export Council, the second component is to assist the Agency for Export Promotion and the third part of the project refers to the strengthening of institutions," said Dragisa Mekic, Assistant Minister of Foreign Trade and Economic Relations and Chairman of the Export Council.

Andrew Thorburn, the team leader of EUEXPRO II said that the latest export trends in BiH are positive, but that there is a long way to go. "The good news is that some companies are doing very well and growing fast, and we want to help more companies through this project, in order to increase the number of exporters," said Thorburn.

Addressing the guests Johann Hesse, Head of Economic Reform and Natural Resources Section, EU Delegation to BiH said: „The EC is looking forward to working with the BiH Government representatives at all levels to ensure that the conditions for future prosperity and eventual membership of the European Union are put in place. I hope that EU EXPRO 2 will become a useful part of this process. “

It is expected that the Project implementation will last until January 2012.

September 3, 2010

Direct Foreign Investments In 2009 Amounted To KM 346 Million    

New statistics data of the Central Bank of Bosnia and Herzegovina (CBBH) shows that the inflow of KM 346 million foreign direct investments was recorded in 2009, amounting to 1.4% of the GDP. This figure confirmed the negative influence of the world financial crises on BH economy in 2009. 

Beside the low level of investing in the ownership capital, only KM 258 million, then KM 311 million into other capital, the negative retained earnings in the total amount of KM -223 million significantly influenced on the total amount of such direct investments. Negative retained earnings were results of negative business results (losses) of certain companies with direct investments, which had not been  the case in previous years.

The largest net inflows of investments came from Croatia (KM 141 million), Russia (KM 129 million), Serbia (KM 105 million), then Germany (KM 91 million). On the other hand, the largest negative values (negative outflows) were recorded in Switzerland (KM -115 million), Austria (KM -105 million), then France (KM -12 million).

Regarding distribution based on scope of industries, there were significant differences in relation to 2008. While 2008 year had been mostly featured by the investments in manufacturing industry (KM 537 million),  the largest investments in 2009 were recorded in the trade sector (KM 179 million).

Trade area recorded the increase of direct foreign investments in the amount of KM 27 million app. Investments in processing industry recorded significant decrease and they amounted to KM 170 million. The global financial crises has had the strongest negative influence on the area of financial mediation, which results in negative values of the direct investments (outflow) in the amount of KM - 91 million.

Total  direct foreign investments balance by the end of 2009 amounted to KM 10.38 billion. This statistics are results of direct research which the CBBH has conducted since 2004 in accordance to the international accepted statistical standards and methodologies. The new data for 2009 year have covered the revised data for the two previous years.

August 26, 2010

Dnevni list, local newspaper, published an interview with Mr. Tie Sosnowski, FIC President and Mr. Stevan Dimitrijevic, FIC Board of Directors members.

Mr. Sosnowski discussed mechanisms of institutional agencies such as CDM/DNA issue is and cooperation with BH Institutions. He emphasized that support of the Government is evident but it requires some time to oversee the administration at different Government levels. “ I think that access to  Clean Development Mechanism (CDM) is one of the crucial issues in BiH that need to be addressed because it would secure: further development of the market for energy efficiency and renewable energy, direct investments in environment friendly projects, diversification of energy sources therefore becoming less dependent on supplies of fossil fuels, it would facilitate an access to CDM for BH companies; would help to increase foreign investment and set an example for other industries.” Also, he stated that “FIC will definitely continue supporting this project and similar initiatives.”

When it comes to legal adviser, Mr. Stevan Dimitrijevic, FIC Board of Directors member, shared his thoughts about the laws that are important for foreign investments in BiH, especially regarding amendments of the Law on obligations and (de)centralization of the banking system in BIH:

 “In an atmosphere of constant change of the legal system, Law of obligations should not be compromised due to this trend, since it is very well regulated. The effectiveness of this law, can only contribute to legal security - characteristics of each country which are highly quoted on the priority list of each foreign investor.

The banking sector is an area regulated at the entity level. Steady businesses would certainly benefit if all these organs operated in harmony, paid attention to each other and coordinated in practice. Better organized coordination would greatly contribute to superior legal certainty. In my opinion it does not necessarily have to take place trough a system of supervision.

In addition, the lack of organized system of supervision does not, to the best of my knowledge, significantly interfere with foreign investors. In my understanding, the banking system has had even more difficult, not to ment6ion unsolvable, such as others have problems regarding banking business they were heavier and almost unsolvable such as (inefficient system of forced collection,  protraction of litigation, etc.)”, stated Mr. Dimitrijevic.

August 13, 2010

BH companies going into partnership with Italians

BH companies interested in cooperation with Italian ones can send their offers via the web page of the Italian Institute for Foreign Trade to Sarajevo.

The Institute says that this way BH companies can find an Italian business partner, it only suffices to send an offer of their products or services and simply make a request.

The Requests and offers, after filling them up, will then arrive at the designated address and get published on the web site of the ICE.

Offers made by BH companies will stay on the web site for three months from the day of publishing, and can be composed in English, Italian or Bosnian, the Institute said.

July 22, 2010

BiH: Positive trend in the import/export ratio

In the first five months of this year Bosnia imported some 340 million euros worth of food while the value of its food exports in the same period was some 87 million euros.

If the same trend continues the value of the country's food imports will reach some 0.7 billion euros at the end of the year. However, this will be lower than 1 billion registered in previous years.

A positive trend is seen in the import/export ratio, which jumped to 25 per cent from 11 or 12 per cent in previous years.

July 16, 2010

Members of the Foreign Investors Council, company representatives, met with Norwegian Ambassador in BiH, Mr. Jan Braathu.

Members of the Foreign Investors Council (FIC), FIC company representatives, had a meeting today, in Norwegian Embassy with H E Mr. Jan Braathu, the Ambassador of Norway in Bosnia and Herzegovina.
The meeting was held due to the CDM matter (Clean Development Mechanism) and with the aim of facilitating an access to clean development mechanisms for companies in Bosnia and Herzegovina operating with renewable energy and international trade emissions. 

FIC members, company representatives, who attended the meeting:

• Natron Hayat
• Messer BH Gas
• HeidelbergCement Group, Cement factory, Kakanj
• EFT Group
• Wolf Theiss (local cooperation)

"As part of the Kyoto Protocol this is also one in a series of mechanisms that Bosnia and Herzegovina should adopt not only as a part of its path towards Euro-Atlantic integration, but also in the race for global competitiveness and elimination of barriers to foreign investments. Foreign investors in Bosnia and Herzegovina require higher standards in the global economy so that production could be more easily channelled. For this task, as well as others, BH authorities should be in charge of forming a National Authority (DNA) which would be responsible for collecting applications from BH companies to access the CDM, as well as providing technical assistance to companies applying for the membership in CDM. Norway Embassy in Bosnia and Herzegovina is ready to provide BH authorities with assistance in building capacity and forming a National Authority (DNA)” declared H E Norwegian Ambassador in BiH, Mr. Jan Braathu.

Accessing the clean development mechanism implies an increase of money transfer and more modern and "greener" technology. This would help BiH to:

• Further develop the market for energy efficiency and renewable energy
• Direct investment in environment friendly projects
• Diversify an offer of energy sources and become less dependent on supplies of fossil fuels

"At the suggestion of Mr. Braathu FIC Board members, agreed and were pleased to take part in this project. I think that this is one of the crucial issues in BiH that need to be addressed. The Foreign Investors Council and companies present today are willing to actively participate in further activities, as well as provide support in the formation of the National Authority (DNA) so that BiH would join CD as soon as possible“, stated Mr Tie Sosnowski, Executive Director of Triland Development Company and the President of Foreign Investors Council Association.

Founded in 2006 as a non-profit association, Foreign Investors Council aims to act as a single voice for all foreign investors in Bosnia and Herzegovina and seeks to promote business-oriented initiatives and provide practical support to all investors in order to improve business environment in the country. FIC members have invested over $ 4 billion in the BiH and employ over 10,000 workers.

July 2, 2010

BH Economic Analysis  -
by Mr. Goran Šaravanja, Unicredit Economic Specialist

Šaravanja predicts economic growth of 0.5%, confirms the beginning of recovery of the domestic economy and comment on the reasons for the stagnation of imports. According to him, the greatest risks remain in the area of fiscal policy because of the deferred instalment IMF.

To read more, please click here.

June 30, 2010 

EBRD Directors visit Bosnia and Herzegovina

A delegation of the EBRD Board of Directors will be visiting Bosnia and Herzegovina from 30 June to 3 July 2010. 

The visit is part of a regular series of consultations that enable the EBRD Directors to obtain up-to-date information on developments in the Bank’s countries of operation.

To read more, please click here

June 22, 2010 

Malta and Bosnia-Herzegovina to endeavour into new potential investment opportunities

Deputy Prime Minister and Minister of Foreign Affairs Dr Tonio Borg received an official visit by the Minister of Foreign Affairs of Bosnia and Herzegovina H.E. Sven Alkalaj. The two day visit aimed at strengthening bi-lateral ties to pave the way for closer collaboration in matters related to trade and investment. During this visit, the Deputy Prime Minister and Bosnian Foreign Minister signed an agreement on the re-admission of persons between the two countries. Dr Tonio Borg pointed out that Malta strongly encourages a sound legal framework to enhance collaboration in respect to trade and investment. Highlighting specific areas of collaboration, the Deputy Prime Minister indicated the importance of concluding other agreements which are still in the pipeline. Mainly a double taxation agreement and an Investment Guarantee Agreement both directed at enhancing investment and job creation.

This collaboration will help boost trade between the two countries, since currently is limited in both volume and trade.

June 14, 2010

Amendments to the Law on Direct Foreign Investment Policy in Bosnia and Herzegovina has been published!

 On June 14th 2010, an Act on Amendments to the Law on Direct Foreign Investment Policy in Bosnia and Herzegovina has been published ("BiH Official Gazette" No. 48/10) which, inter alia, regulates that the registration process for foreign investments shall be conducted in accordance with the procedure of registering business entities in Bosnia and Herzegovina, its entities, and Brcko District.

Bearing in mind that when the aforementioned Act enters into force (the eighth day following its publication in BiH Official Gazette) the obligation of foreign investors to register their individual investments with competent authorities of the state shall cease - an activity that has so far been conducted by the Ministry of Foreign Trade and Economic Relation.

Ministry for Foreign Trade and Economic Relations shall no longer be involved in the process of registration of foreign investments in BiH, which implies that the Municipal Court shall take over the jurisdiction when it comes to registering foreign investments. With this change, procedure should be conducted only by one competent body, in this case Municipal Court.

This should reduce procedure of registering foreign investments and speed up the process of the registration for the foreign companies in BiH.

June 16, 2010 

BUSINESS FORUM BIH-MACEDONIA

The Business Forum of BiH-Macedonia, organised by the BiH Foreign Trade Chamber and the Chamber of Commerce of Macedonia, was held in Skopje on 16th June 2010.

The Forum gathered 60 companies from BiH and Macedonia. The BiH business delegation was led by the President of BiH Foreign Trade Chamber, Mahir Hadziahmetovic.

The Forum was attended among others by the representatives of the BiH Ministry of Foreign Trade and Economic Relations, the BiH Chamber of Commerce, the Agency for Export Promotion and the Foreign Investment Promotion Agency (FIPA).

On this occasion, the FIPA representative, Nina Pobric, had a presentation on the BiH investment opportunities for Macedonian business people.

June 6, 2010 

FIC President, Mr. Tie Sosnowski, gave an interview for the World Investments News.

To read the interview, please click on the link below.
http://www.winne.com/dninterview.php?intervid=2824

June 2, 2010

HEDEILBERG CEMENT GROUP is taking over the business of the TBG Beton d.o.o. Zagreb

 During the assembly held yesterday in Kakanj, shareholders of the Cement factory Kakanj adopted the results of operations conducted in 2009 and claimed that the total business in 2009 amounted 103,9 million, while the profit totalled at 38,4 million marks.  The assembly has reached the decision that certain amount will be paid to shareholders in a form of dividends in the amount of 2,5 marks per share, which in total amounts up to more than 23 million marks. Also, the decision on business expansion to other countries has been reached. Therefore, at the beginning of the June 2010 Cement factory Kakanj will take over the business of the TBG Beton d.o.o. located in Zagreb, which owns 6 operation units for production and distribution of concrete in Croatia.

 June 2, 2010

EU- Western Balkans Conference in Sarajevo

The EU-Western Balkans conference starts in Sarajevo on June 02, 2010.
It will be attended by 48 delegations, 29 ministers and secretaries general of institutions and organizations, 33 deputy foreign ministers and 7 chief secretaries of foreign ministries, who have the rank of deputy ministers. Besides EU officials, there will also be representatives of the U. S., Russia and Turkey, as well as the international organizations in Bosnia and Herzegovina. The organizer of the forum is the EU presidency.

May 27, 2010

FBiH: Concrete measures to cut public spending    

The government of Bosnia’s Croat-Bosniak (Bosnian Muslim) part will have to pledge that it will take concrete measures to cut public spending and reform welfare payments in order to open the way for the release of the fourth installment of a 3-year standby arrangement with the International Monetary Fund.

The government has been asked by the IMF to sign a new letter of intent listing specific decisions it will have to make by the end of May, including rebalancing its 2010 budget to cut it by nearly €50 million.

One of the pledges the government is requested to make is to cut the number of decorated war veterans who receive cash payments from the budget by 20 per cent.

May 26, 2010

Diaspora the biggest Investor in BiH

5th Congress of the World Union of BiH Diaspora was held from May 21st to 23rd in Sarajevo where was discussed on the elections planned for October in BiH, census and the role and importance of BiH Diaspora for BiH.

"Diaspora is the biggest investor in BiH and it keeps social peace in BiH and this is not really valued in this country"; Namik Alimajstorovic, member of the Union of BiH Diaspora Board.

He added that this is the only healthy money that is brought to this country.

Around 130 delegates from 20 countries participated at the 5th Congress of SSD BiH.

May 14-15, 2010 - EBRD Annual Meeting in Zagreb

Spiric at Informal Meeting of SEE CountriesPrime Ministers

The BiH CoM Chairman noted that for BiH, as for the most other countries in the region, the key question is how small and open economy can fend off the external shocks

 The BiH CoM Chairman, Nikola Spiric, par­ticipated on Friday in Zagreb at the Informal Meeting of Prime Ministers of South Eastern European countries at the invitation of the Croatian PM Jadranka Kosor and President of the EBRD Thomas Mirow.

Spiric stressed the previous successful cooperation with the EBRD, one of the largest investors in BiH, which focuses its activities in two directions: to support infra­structure projects and energy sector, and to support the financial sector and small and medium enterprises. He stressed the impor­tance of such events in the context of region­al cooperation, which proved to be crucial in overcoming the current challenges. Pointing out that today's world is intercon­nected and dependent, Spiric said that a big drop in one country or region can rap­idly lead to economic problems and the collapse in other countries, the BiH CoM's press office informed. "It is necessary to bear in mind that a cri­sis, about whose consequences we are talking today, came fast and for many unexpectedly affected the entire world in a way that up until yesterday was considered unthinkable", Spiric said.

May 13, 2010

JOINT STATEMENT OF THE EUROPEAN COMMISSION AND BOSNIA AND HERZEGOVINA

Representatives of the European Commission and Bosnia and Herzegovina institutions met in Brussels to discuss the level of approximation and transposition of the EU rules in the fields of Internal Market and Competition. 

Progress of Bosnia and Herzegovina in its European Integration process depends on the country's fulfilment of the requirements of the Stabilisation and Association Agreement (SAA) and the European Partnership with the EU. Freedom of the flow of goods, services and capital is of high relevance for Bosnia and Herzegovina's economic development. In this respect, the country should do its utmost to complete the creation of one single economic space. The transposition of the EU rules in the field of Internal Market creates a good basis for the increase of exports and hence better conditions for all kind of economic actors, above all small and medium-sized enterprises (SMEs). At the end of the meeting, the delegations of the European Commission and of Bosnia and Herzegovina reached the following conclusions:

Some progress has been made by Bosnia and Herzegovina in the banking sector and as regards insurance and other financial services. Better harmonisation of legislative acts and their implementation between the two Entities would be welcome, although relevant information is already exchanged by the main stakeholders. Banking supervision at State level is still not ensured. The Public Procurement regime of the country needs further approximation to the EU rules. Contracting authorities from State Ministries down to Municipalities will be able to obtain more economically advantageous offers for the services, supplies and works tendered.

Good progress will have been reached by Bosnia and Herzegovina in the field of intellectual, industrial and commercial property rights, if the related laws are finally adopted by the Parliamentary Assembly of Bosnia and Herzegovina in the coming days. Better coordination of the enforcement of these rules amongst the various authorities in the country will be the next main task. 

Some progress was also made regarding the freedom of establishment. The company legislation is fully harmonised, however the registration procedures of companies in both parts of the country should be further simplified. Bosnia and Herzegovina should further align its legislation with the postal acquis. It has been agreed to set up a consultation mechanism to find an acquis-compliant solution. 

The Commission welcomed the progress made in the transposition of the EU rules in the field of company law, accounting and auditing. This will help to create a better legal environment to companies, in particular to SMEs. This will also contribute to more foreign investments. 

The parties agreed to closely analyse the situation of public undertakings with regard to trade and competition. The Commission offered technical assistance in the near future for this purpose. 

The Commission welcomed the good functioning of the Competition Council and expressed its hope that the continuity of the functioning of the Council will be ensured through a proper selection procedure of new members in time. 

The Commission urged Bosnia and Herzegovina to adopt a State-aid Law at State level before 1st of July 2010. Otherwise, the Commission would have to declare Bosnia and Herzegovina being in breach of the Interim Agreement of the SAA.

May 11, 2010

The fourth tranche of funds under the stand-by arrangement with the IMF - EUR 38 million - might reach BH by the end of June, and that would close the first year of the stand-by arrangement with disbursement of EUR 200 million out of the total 400 million, the finance Ministry of BH has announced.

The head of the IMF mission to BH - Costas Christou - further added that the allocation depends on fulfilling conditions from the second review of the arrangement and an assessment by the IMF's Board in a meeting in June. He met today with finance minister of BH Dragan Vrankic.

It was underlined in the meeting that the general framework and deadlines were honoured by BH so far, and that state-level authorities had met IMF's conditions. Vrankic said he expects the same from entity governments, so that the stability of BH's fiscal system is not threatened. A need was highlighted for strengthening the Fiscal Council. The IMF delegation will be in BH by May 17.

May 4, 2010

EBRD - granted 19 million Euros loan for the construction of State prison in BiH.

Further conditions will be discussed in June, as confirmed by BiH Deputy Minister of Justice, Srdjan Arnaut.

April 27, 2010

UNICREDIT - FIRST LICENSED BANK FOR AGENCY AND UNDERWRITING


UniCredit Bank, a member of UniCredit Group, is the first and so far the only bank in Bosnia and Herzegovina, which is licensed to conduct services of agent and underwriter in process of emission of securities.

With this permit, the Bank is able to offer its clients the organization, preparation and implementation of the emission of securities. The success of the emission is provided through subscription and payments of portion/all securities being issued. The emission will be performed through Financial Markets and Investment Banking department, which apart from the above stated services, offers variety of services in the areas of corporate and structured finance.

In B&H, UniCredit Bank is applying trends from global capital markets, using specialized knowledge and practice created by 22 European countries where it operates as a bank with the longest tradition in this business.

EBRD's Business Development Corporate Event

 April 27,  2010 at Holiday Inn, Herzegovina Conference hall,  at 11:00hrs
( By invitation only)

With over EUR 3.2 billion of investments in the Western Balkans private sector, the European Bank for Reconstruction and Development ("EBRD" or the "Bank") is the single largest investor throughout the region. Since 1996, EBRD has been active in supporting BiH companies; among others our investments include Konzum, BIMAL, Natron Hayat and banks such as Unicredit bank, Intesa San Paolo bank and Raiffeisen bank.  The Bank is keen on further supporting BiH private sector through providing debt or equity financing to good companies.

On this occasion, the Bank will present (i) financing instruments offered to support your company's development plans, (ii) available complimentary programmes such as energy efficiency and TAM/BAS, and (iii) LEF facility tailored for smaller projects. The keynote speaker at the presentation will be Mrs.Vedrana Jelusic-Kasic, Regional Senior Banker Agribusiness.

Download presentation (click here)

April 27, 2010
Conference of "Competitiveness of the territory in the context of direct foreign investment"

The Conference called "Competitiveness of the Territory in the Context of Direct Foreign Investment", organised by the RS Ministry of Economic Relations and Regional Cooperation, the Municipality of Prijedor and GTZ (German Organisation for Technical Cooperation) will be held from 27th to 28th April in Prijedor.

The conference will be decided on the following topics:

.         Important elements of the business environment and their role in improving the business climate,

.         Institutional support - guarantee for the investments attraction,

.         Investors - remarks, comments and suggestions,

.         Determination of the priority sectors,

.         Achieving the competitiveness through the investments attraction - implementation of the marketing strategy.

The target group for participation at the conference are the representatives of local administration, the policy makers and the participants in the process of decision making, the representatives of agencies and organisations, the representatives of investors and other stakeholders which they can contribute to increasing the competitiveness and the overall investment and business climate.

RS: Russians invest 9.4m in fuel quality control

The Bosanski Brod Refinery has invested BAM 6.4 million in a new building and equipment for its new laboratory. With another BAM 3 million, the investment should suffice to meet high standards in the quality of fuel and its control.

The laboratory is in the final stage of setting up, and yesterday it was toured by representatives of relevant ministries in Republika Srpska, inspectors and Optima Group.

A representative of Optima Group (owned by Neftegazincor) said the purpose of the tour was to introduce the officials to the methods of petroleum derivatives' production, and the control system the refinery applies throughout the process.

"We support all activities aimed at establishing quality control, consumer protection and increasing environmental standards", he said.

April 22, 2010, Banja Luka

FIC List of Priority Reforms to Improve the Business Climate in the Country  
Presented to the RS Government Officials

On April 22, 2010 in Banja Luka, BiH Foreign Investors Council (FIC) presented the White Book for 2009. 

Foreign Investors Council (FIC) while presenting the White Book for 2009 referred to political instability, grey economy, inadequate structure of labour force and administrative obstacles and barriers as key obstacles to foreign investments in BiH, offering at the same time number of recommendations on how to remove those obstacles.

The White Book is a publication produced on an annual basis by FIC Members. Its purpose is to suggest to the authorities of Bosnia and Herzegovina (BiH) a prioritized agenda of reforms in order to address key obstacles to investments.

The RS Minister for Economic Relations and Regional Cooperation, Ms. Jasna Brkic stated: "Some laws, primarily Law on Companies which entered into force at the beginning of the year, followed by determined Draft Law on Construction and Spatial Planning, and certain reforms in the area of financial sector, analysis of laws from the area of work relations we intend to work on this year, improved sufficiently the business environment and of course, as a result, this year we expect considerably greater inflow of direct foreign investments in RS than last year."

Member of the FIC Board of Directors  and Chief of the EBRD's Mission to BiH, Mr. Giulio Moreno stated: "Taking  into  account  the  effects  of  the global financial crisis, it is very important to act determinately, so as to remove all those obstacles and problems which new  investors  face  and  then,  when the  financial  situation  permits, enable  inflow  of  new  investments."

"The RS Government obviously found the time and dedicated attention to the things we wrote about, but also for something to happen in normative sphere and practice, therefore we all expect positive breakthroughs for foreign investors in practice, which have already been recorded when compared to the previous year", stated Member of the FIC Board of Directors and Attorney at Law at the Law Office Karanović&Nikolić (in local cooperation), Mr. Stevan Dimitrijevic, adding that the progress will continue.

Established in 2006 as a non-profit business association, the FIC aims to be the single voice of foreign investors in Bosnia and Herzegovina. The FIC strives to promote pro-business initiatives and deliver practical support to all investors to improve the business environment in the country. FIC Members have invested over 4 billion EUR in BiH and employ over 10.000 employees
(download PDF)

     

April 21, 2010, Sarajevo

PricewaterhouseCoopers d.o.o. Sarajevo participates in Career StartUp event on Faculty of Economics Sarajevo that is being held on 21 and 22 April 2010. PwC is of the view that this is a great opportunity to meet the future business leaders in person, to hear their ideas and to provide them with information how to apply for a job in PwC.

PricewaterhouseCoopers has been voted to be number one in The Times Top 100 Graduate Employer for six years in a row. "For graduates who are serious about a career in business, they don't believe anyone else could provide a better start. Their people make them stand out as a firm. They choose the best and invest heavily in them. Graduates will benefit from training that helps them to gain breadth as well as depth of knowledge; support to gain a professional qualification and the chance to work in different teams and offices, experience different clients and projects, try out new roles and even sample other business areas. It will all help to develop along a path that fits personal aspirations as well as the ever-changing needs of their business. Bring them talent and commitment, and they will offer a competitive salary plus an innovative flexible benefits scheme."

The country director Aida Soko is pleased to invite all interested students to visit our stand in the Economics Faculty, or our website www.pwc.com/ba in order to receive answers to your questions in regard to starting a career in PricewaterhouseCoopers.

April 20, 2010, Sarajevo

Al-Shiddi Invests $257m in Sarajevo

The Sarajevo City Center development has already begun and will include a shopping and entertainment centre, five-star hotel and office tower next to the parliament and government buildings, B&H Business Daily reported.

The private Saudi-based property, trade and agriculture group Al-Shiddi is investing up to 257 million US Dollars in the next two years in its Sarajevo joint venture with Bahrain-based International Investment Bank, as well as in a hotel in Sarajevo.

Chairman Sulaiman Al-Shiddi said he expects the completed complex to be worth 406 million US Dollars as it occupies the last comparable location in the city, where space is limited due to surrounding mountains.

The group started looking for investments in Bosnia in late 2004 when prices were extremely cheap, he said. ,,If you compare the prices today with the region, they are still 50 percent lower than in Slovenia, Croatia, and Montenegro".

Al-Shiddi said it took three years to get construction permits for the project, but if the project is successful, other Middle East investors will follow his example.

Industrial production in Federation grows in March         

The statistics agency of Federation said yesterday that the industrial production in this entity of BH increased in March in comparison with February by 7.4 per cent.

Compared with the average monthly output in 2009, it decreased by 0.3 per cent, while year on year it increased by 2.5 per cent. The processing industry's output increased in the first three months by 0.5 per cent annually.

Also in March, the purchasing price index was up by 0.1 per cent m/m, by 1.8 per cent in comparison with the 2009 average and by 17.9 per cent in comparison with the 2005 average. In the first quarter, the CPI increased y/y by one one per cent.

April 14, 2010, Sarajevo

     

The BiH Foreign Investors Council (FIC), organized a cocktail party at the restaurant "4 sobe gospođe Safije" in Sarajevo, with the aim to promote the activities of the Foreign investors Council and the expansion of its membership.

Representatives of local companies with majority foreign capital attended the cocktail party and had the opportunity to enjoy the professional presentation of wine sommelier, Barbara Pribožić - Leka.
Mr. Tie Sosnowski, FIC President of the Board of Directors and Chief Executive Officer of Triland Development, and Mr. Giulio Moreno, Head of Mission of the European Bank for Reconstruction and Development in BiH addressed the guests.
Mr.Sosnowski briefly introduced the activities and mission of the Foreign Investors Council and stressed the partnering with in order to protect the interests of foreign investors in BiH: "In addition to our current nearly 30 members, we are open to expand our membership, due to a fact that only as a group we can go ahead and have an impact on reducing the existing administrative obstacles faced by foreign investors in our country. "
Mr. Moreno mainly pointed out that the activities of the Foreign Investors Council are not only important for the members and foreign investors, but also for the overall development of BiH economy.
Established in 2006 as a non-profit association, the Foreign Investors Council aims to act as a single voice for all foreign investors in Bosnia and Herzegovina, and seeks to promote business-oriented initiatives and provide practical support to all investors in order to improve the business environment in the country. Members of FIC have so far invested over 4 billion euros in BiH and employed more than ten thousand citizens.

April 8th 2010, Sarajevo

The fifth Cooperation Council was held on Thursday, April 8th 2010, at the Netherlands Embassy in Sarajevo. The meeting gathered Economic Counselors of the following Foreign Embassies and Nongovernmental representatives, together with the representatives of the FIC.

• Ms. Astrid Pummer - Embassy of Austria Trade of Commerce
• Mr. Matthias Heinz - German Embassy Commercial Department
• Tracey Newell - Embassy of the United States of America
• Mr. Michael Wolski - Association DBHWV
• Mr. Massimo Di Giandomenico - Istituto nayonale per il Commercio Estero I.C.E.
• Ms. Violeta Čibukčić - American Chamber of Commerce

Mr. Sosnowski, the President of the FIC welcomed the participants and opened discussion.

Members of the Cooperation Council discussed key highlights from the previous meeting held in February 2009 and agreed that the issues in relation to Indirect Tax Authority and changes and amendments on the Law on movement and stay of foreigners in BiH should be further reviewed.

Next Cooperation Council will take place in September, when we will have an opportunity to continue our discussions.

April 6-7, 2010, Sarajevo

SARAJEVO BUSINESS FORUM 2010

 Bosna Bank International in cooperation with the Islamic Development Bank Group is organizing the upcoming Sarajevo Business Forum and has already prepared 95 projects with BH companies, to be presented to foreign investors, at the value of five billion BAM!

This is an indication that the B&H businessmen have understood the importance of Sarajevo Business Forum, and we as organizers have exceptional honor to give them a chance to come on the 6th and 7th  April  and reach to the investors for their projects, " stated Amer Bukvic, CEO of Bosna Bank International.

For more info, please visit: www.sarajevobusinessforum.com

April 13 - April  17, 2010

INTERNATIONAL ECONOMIC FAIR MOSTAR
International Economic Fair Mostar is most important and most popular economic event in BiH, creating a pleasant business environment, top-quality business networking of its exhibitors and visitors also by organizing round tables, conferences and events.

Exhibition programs: Automobile industry -  Construction industry  -  Agriculture and food industry  -  Wood and lumber industry  -  Utility equipment  -  Electrical and chemical industry  -  Medical supplies and cosmetics  -  Telecomm and technology  - Banking and insurance  - Metal production and processing  -  Craft

For more info please visit: http://www.mostarski-sajam.com/

Thursday, March 18th 2010

Foreign Investors Council of Bosnia and Herzegovina (FIC) held the 3rd General Assembly of the Association

On Thursday, March 18th 2010, the Foreign Investors Council (FIC) convened for the third general assembly in 2010. (download the PDF)

Milan, 22 February 2010

UniCredit receives mandate for SEPA payments of the European Commission

The European Commission has charged UniCredit with carrying out a large portion of the Commission's SEPA payments. Thus, UniCredit is one of four banks responsible for all SEPA payment transactions on behalf of the European Commission from now on.
Sergio Ermotti, Deputy-CEO of UniCredit: "This mandate shows the quality of our Global Transaction Banking capabilities that allows us to serve our clients in 22 European countries." Marco Bolgiani, Head of Global Transaction Banking of UniCredit: "The crucial factor for the European Commission's positive decision was our strong commitment to SEPA, together with our large network all over Europe."
The mandate was awarded as the result of a tendering process in which all banks in Europe were invited to take part. "With a share of between 25 and 35 percent of the total volume, we have proved our competitiveness once again", said Marco Bolgiani. The total transaction will amount to more than 1.6 million international payments with a volume of over EUR 33 billion. The European Commission's decision to process payment transactions via SEPA in the future and to focus on four banks means it will progressively abandon the previous model in which local banks in every European state were responsible for processing the respective payments.

About UniCredit
UniCredit is a major international financial institution with strong roots in 22 European countries as well as representative offices in 27 other markets, with approximately 10,000 branches, more than 166,000 employees at 30 September 2009.
In the CEE region, UniCredit operates the largest international banking network with approximately 4,000 branches and outlets.
Global Transaction Banking of UniCredit combines the local expertise of more than 2,000 professionals with the experience of a sophisticated global transaction bank, offering a diverse and proven set of core competencies in the fields of Cash Management and eBanking, Trade Finance, Supply Chain Management, Structured Trade and Export Finance. It offers Global Securities Services when related to CEE countries as well. UniCredit Group is the largest transaction bank in continental Europe. Many international awards demonstrate this. Thanks to an international network comprising about 10,000 branches in 22 countries plus 4,000 correspondent banks in 50 countries around the globe, UniCredit Group serves more than 400,000 corporate customers worldwide.
The Group operates in the following countries: Austria, Azerbaijan, Bosnia and Herzegovina, Bulgaria, Croatia, Czech Republic, Estonia, Germany, Hungary, Italy, Latvia, Lithuania, Kazakhstan, Kyrgyzstan, Poland, Romania, Russia, Serbia, Slovakia, Slovenia, Turkey and Ukraine.

Enquiries:

Media Relations:
Tel. +39 02 88628236 ; e-mail: MediaRelations@unicreditgroup.eu

Global Transaction Banking
Media Relations
Markus Block
Tel. +49 89 378 24644
markus.block@unicreditgroup.de

19. 01. 2010  
The CMS Real Estate team is the leading provider of real estate legal and tax services in Europe, operating in 36 cities across Europe and in a total of 53 locations world-wide with over 600 partners and more than 2,400 legal and tax advisers. CMS experts will attend this year's ExpoReal in Munich and would like to invite you to targeted workshops.

14. 01. 2010 -- At the start of 2009, many feared a total automotive meltdown as global economies stalled and the financial system faced collapse.  However, various forms of government intervention engineered a relatively soft-landing for the industry given the turbulence. In the case of China, the auto sector not only averted crisis, but posted extraordinary growth.
Calum MacRae, Auto expert, PricewaterhouseCoopers LLP said: 
"2009 will forever be remembered as one of the most turbulent and challenging years in the global automotive industry's 100+ year existence. Aside from difficult lessons in financial and operational restructuring, the past year's travails offered a valuable commentary about the relationship between national economic well-being and automotive industry performance.
"Because of the industry's powerful economic multiplier effect, the auto manufacturing sector is considered by many as simply too important to be allowed to fail - especially during periods of recession.  In Europe, for example, it is estimated that 2 million are employed directly in the industry, with 12 million more employed indirectly."
So what is in store for 2010?  North America will likely exit the recession in a better competitive state than other mature regions due to significant restructuring and capacity reductions made by suppliers and car manufacturers, rather than relying heavily on artificial market stimulus ($3 billion CARS program notwithstanding).
Scrappage
Conversely, the European sector's dependence on scrappage schemes during 2009 has preserved an abundance of capacity.  Autofacts currently estimates that 6.5 million units of excess capacity exist in the EU alone, suggesting that the region's challenge to competitively align supply and demand will likely persist due to the existence of many domiciled automakers and national champions. 
Given China's performance in 2009, industry observers could be excused for concluding that the market was temporarily stoked by the central government's economic stimulus package, which supported a year on year sales surge of 50%.  Not so. According to Chinese Ministry of Commerce officials, scrappage incentives are set to be a long-term strategic input into the industry's development. 

Looking ahead
North America
As the curtain drops on a year that was historic for all the wrong reasons - lowest US light vehicle sales since 1982 coupled with the lowest US light vehicle production since the 1940s - 2010 holds considerable promise for the embattled region. Dramatic industry restructuring throughout every level of the value chain has delivered most surviving entities to a leaner and more agile state.  Further, with the regional economy reportedly exiting recession in the waning months of 2009 and inventory correction underway, the outlook for North America sales turns positive in 2010. Autofacts forecasts a 10% improvement to 13.9 million units (11.4m in the US), forming the basis for Autofacts' 2010 North America assembly forecast of 10.4 million units.
European Union
PwC Autofacts expects overall EU light vehicle demand to fall by 900,000 units in 2010, driven by a large decline in German car demand. The anticipated decline is not greater due to - in line with economic recovery - growth in non-scrappage EU markets and in light commercial vehicle (LCV) demand, which has been very hard hit over the past two years
East Europe
East Europe suffered an estimated fall in output of 47.4% in 2009 over 2008. 2010 is also likely to be a challenging year, but there should be some improvement in sales and assembly volumes. Similarly, the recovery from recession of major European export markets will have a positive impact on countries that are major vehicle exporters, although this is likely to be tempered by the 'pull-forward' effects of scrappage schemes in major European markets. With EU LCV sales scheduled to experience some recovery, the trend is positive for East European OEMs exporting to the EU.
Developed Asia-Pacific: Japan and Korea
In South Korea, local market incentives did their best to offset the effect of vehicle exports suffering a decline of 24%.  The government's tax break incentives for vehicles registered prior to December 31st, 1999 served to boost the local market by some 16% to nearly 1.2 million units.  With the tax break expiring at the end of 2009, the onus for the South Korean auto industry will be on a restoration of export volumes as global economic fortunes improve in 2010.  Currently, Autofacts expects improved export prospects to result in a 5.2% increase in South Korean light vehicle assembly to 3.4 million in 2010, against the 10.6% decline to 3.3 million posted in 2009. 
Japan's industry has suffered similarly to Korea's - weak export volumes compounding poor domestic sales performance.
Developing Asia-Pacific: China and India
Autofacts continues to take an optimistic view on China's prospects due to the bold initiatives outlined by the Beijing government.  Although the sales tax for sub-1.6L vehicles has been revised upward to 7.5% from 5% (prior to stimulus, the rate was 10%), the widening of the range of scrappage incentives to RMB5,000-18,000 from RMB3,000-6,000 is a significant step that should help buyers continue to support market growth. The incentives, allied with continuing strong economic performance, should enable China's GDP per capita to breach the US$5,000 barrier in 2012.  That barrier traditionally signals a strong upturn in a country's light vehicle sales, thus in 2010, Autofacts anticipates a 10% sales growth rate, down from 2009's astonishing 48%.
India appears to be more circumspect in promoting its vehicle industry and bolstering auto market growth.  The government has indicated that its economic stimulus will be wound down in 2010.  Already, monetary policy has been tightened to curb increasing inflation.  Nevertheless, India's automotive sector prospects look extremely positive as GDP growth should be maintained in the 6-7% range.
South America
The success of Brazilian tax incentives, combined with a strengthening economy helped annual light vehicle sales to reach 3 million units in 2009, a record-breaking 12.7% improvement over 2008. Support for Brazil's domestic market has been crucial to offset a 43% drop in export volume, but the net effect on light vehicle assembly puts 2009 marginally ahead of 2008's previous high point.  Looking toward 2010, a confluence of drivers suggests that Brazil's automotive industry will continue to break records. As the export situation improves next year and Brazil's economy posts positive GDP growth, Autofacts forecasts that assembly will increase by a healthy 7.8%.
Calum MacRae, auto expert, PricewaterhouseCoopers, commented:
"Looking ahead, all industry participants along the global supply chain will become intensely focused on remaining relevant in the rapidly changing environment.  Success will likely be defined by an entity's ability to fill voids in future technology portfolios, enhance regional coverage, and address scale issues. Thus, increased M&A activity is likely to ensue. With global industry concentration weakening over the forecast period, due to emerging major OEMs, sifting winners from losers is expected to be as challenging as ever."

About PricewaterhouseCoopers
PricewaterhouseCoopers provides industry-focused assurance, tax and advisory services to build public trust and enhance value for its clients and their stakeholders. More than 163,000 people in 151 countries across our network share their thinking, experience and solutions to develop fresh perspectives and practical advice.
"PricewaterhouseCoopers" refers to the network of member firms of PricewaterhouseCoopers International Limited, each of which is a separate and independent legal entity.

08 JAN 2010 - Company m: tel became well known by social responsibility, as one of the most important strategic objectives.

Corporate social responsibility is especially active in the fields of:
Sponsorships
Humanitarian Action
Sponsorship of concerts, performances, film festivals, sporting events, our name linked to major music stars, world championship, team handball match. m: tel reward excellence, encourage creativity and support of youth activities such as musical creativity and youth entrepreneurship. Sponsoring educational conferences, we support education, and donations for the clinic if we contribute to the development of health care. We participated in many humanitarian activities, donating significant funds for those most in need. The youngest, we become friends since birth, children with special needs from throughout BiH showed that they are not alone. Socially responsible business - plan to continue!

London, 7 JAN 2010 - The after effects of the worldwide economic and financial downturn have altered the business landscape and have challenged long-standing assumptions about successful operating structures. There is a need to establish a new 'normal' for the automotive industry and the reality is that the game has changed, according to the report 'Global Automotive Perspectives' by PricewaterhouseCoopers.

New approaches to everything automotive companies do from reporting to their stakeholders and the investment community to making decisions on tax and legal structures in a changed global market are essential.

Richard Hanna, global auto leader, PricewaterhouseCoopers LLP said:

"During the last decade, the underlying competitive landscape has changed dramatically because of the emergence of new markets and new industry players as well as fundamental changes in the economic environments of the mature markets. The global recession has challenged the core operating models responsible for delivering the business strategy of many companies.

In addition to the traditional disclosures on results of operations, cash flows and financial position, users of financial statements want insight into management strategy for dealing with changing industry, extended liquidity information and transparent discussion of risks and the company's outlook. Establishing a regular information flow between companies and the investment community develops a climate of confidence, creating a virtuous circle of transparency and credibility."

The report highlights three key themes:
Robust and transparent reporting on financial results and outlook
The golden rule of transfer pricing and how companies can help themselves
Simplifying the business model 
Financial reporting

Since the beginning of the economic crisis, reporting has focused more on cash flow, and many companies have released enhanced information on debt maturity and covenants, cost-optimised liquidity and capital resources, their level of equity and refinancing measures, and their level of working capital and cash requirements.

However, based on PwC's discussions with analysts at the latest 'Meet the Experts' Conference in London, there are gaps between the provided information and the information that the capital markets need to understand a company's performance. Specifically, capital markets want details on the impact of foreign exchange translation on debt on the one hand, and acquired (or divested) debt on the other hand. Numbers alone however, are not enough - the analyst community need to understand the management's vision and strategy.

Transfer pricing

Most companies have set rules to determine the prices for intercompany transactions. These rules work under stable economic conditions but might not be adequate during a downturn. For example, typical transfer pricing arrangements may generate situations in which a large number of entities within the group are paying cash taxes while the group as a whole is loss-making.

The golden rule of transfer pricing (TP) is to set prices for transactions between related parties as independent parties would - the so-called arm's-length principle.

Simplifying the business model

The automotive industry is over 100 years old, and layers of complexity have been introduced at each turn of its evolution. It has one of the most complicated upstream and downstream value chains for a volume produced product.

Car manufacturers and suppliers need to have different strategies for mature markets versus emerging markets. In emerging markets, companies must have the very efficient market access platform to position themselves to benefit from growth opportunities.  However, without the right strategy and execution in mature markets, it is clear that companies cannot profit from emerging markets - the persistence of structural cost and complexity in mature market operations will eventually rob all but the most resilient competitors of the opportunity to compete in emerging markets.

Richard Hanna, global auto leader, PricewaterhouseCoopers LLP said:

"A complex corporate operating model can be costly to manage and to maintain. It can create specific challenges as well, not the least of which is impaired operational efficiency. Change is never easy however, provided the change effort is recognised and managed appropriately, the size of the prize at the end of a successful implementation can be significant --  a cost effective, risk-compliant, tax efficient, and flexible organisation which is truly fit for the future, whatever it might hold."

About PricewaterhouseCoopers

PricewaterhouseCoopers provides industry-focused assurance, tax and advisory services to build public trust and enhance value for our clients and their stakeholders. More than 163,000 people in 151 countries across our network share their thinking, experience and solutions to develop fresh perspectives and practical advice.

"PricewaterhouseCoopers" refers to the network of member firms of PricewaterhouseCoopers International Limited, each of which is a separate and independent legal entity.

Our Automotive Practice

More than 1,500 skilled PwC professionals comprise our global automotive network, which is driven by eight Centres of Excellence to provide guidance, offer analysis, and deliver solutions to firms across the entire automotive industry value chain. Autofacts, PwC's industry-differentiating service offering, includes a global research team dedicated to delivering data analysis, assembly and capacity forecasting, and support to advisory services to our clients and their stakeholders.