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Belgrade Media Report 22 April 2016

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STORIES FROM LOCAL PRESS

• Djuric: Ivanovic’s trail political process (Beta)
• Djuric: We will fight for greater rights and stronger support for Serbs (Tanjug)
• Schroeder: Serbia should move forward to EU, not backward (RTS/Tanjug)
• Frattini: EU will not allow Croatia to block Serbia (Tanjug)
• Zheleznyak: Elections important for Serbia’s future policy (Tanjug)
• Djurovic: Borders not stopping migration (Beta)
• OSCE to collect votes on Sunday, take them to Raska, Vranje (Tanjug)
• Pre-election silence in Serbia (FoNet)

STORIES FROM REGIONAL PRESS

• Bakir Dautbasic not SBB’s candidate for the Council of Ministers anymore (Srna/Fena)
• Federation of B&H House of Peoples unanimously adopts a Resolution on elections in Mostar (Fena)
• Foreign ministry says Serbia’s protest note election campaigning (Hina)
• Croatia soon to take in first refugees from Turkey, Greece, Italy (Hina)
• Brajovic: Election results from Tivat should be expected on national level too (MINA)
• Incident prevented: Protesters and supporters of GDOM, ran into each other (Telegraf.mk)
• Macedonia protests: Stop destruction, elections must be held, there is no backing off (Telegraf.mk)
• Nikola Gruevski: SPO turned into SDSM’s inquisition instrument (MIA)
• EC regrets cancellation of Vienna leaders’ meeting (MIA)

RELEVANT ARTICLES FROM INTERNATIONAL MEDIA SOURCES

• Aleksandar Vucic Serbia’s hardline hawk turned friend of West (AFP)
• Bosnia Having Trouble Obtaining Much Needed IMF Financing (Economy Watch)

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LOCAL PRESS

 

Djuric: Ivanovic’s trail political process (Beta

The Head of the Office for Kosovo and Metohija Marko Djuric has assessed that the trial of the leader of the SDP Civic Initiative Oliver Ivanovic is a “par excellence” political process. Djuric told a press conference at the Belgrade Media Center that the verdict to Ivnaovic is inflicting injustice not only to the SDP leader and his family, but to the entire Serbian nation in Kosovo and Metohija. “Ivanovic didn’t have the right to a fair and unbiased trial. Different political motives had influence in this process, and while he is in prison, all principles on which modern societies rest are behind bars,” said Djuric. According to him, the Serbian government requests “those who are keeping” Ivanovic in prison to use the same criteria – that they had used for his imprisonment – to set him free. “He is one of us, and what happened to Ivanovic can happen to any Serb in Kosovo and Metohija. That is why we need to be united in the struggle to undo this injustice,” said Djuric. He says that whenever he meets EU representatives he launches the issue of Ivanovic’s position and that there is a constant dose of pressure from the Serbian side in this regard. “The problem is that we encounter a wall in these talks. Their response is that this is an issue for the judiciary and that they do not want to interfere as politicians. I see this kind of reaction as washing hands off this case, and in this respect there is a considerable dose of hypocrisy,” assessed Djuric. Ivanovic’s attorney Nebojsa Vlajic says that the second-degree trial in that case has commenced. “Every appeal is as good as the verdict is good and, so far, I haven’t seen such a brutal verdict. The court practically indicted Ivanovic based on the statement of a false witness for being present at the location of alleged crimes, which cannot be enough for a verdict,” said Vlajic. He assesses that Ivanovic was convicted for the things he was not even charged with and that the European Convention on Human Rights Protection was violated in the procedure against Ivanovic. “Ivanovic’s verdict is not too harsh but unjust, because we are not asking for mercy, but for justice,” said Vlajic, reminding that Ivanovic has been in custody 27 months and that he will remain until the verdict of the Appellate Court. The President of the Bar Association of Serbia Dragoljub Djordjevic opines that Ivanovic’s verdict is a reflection of the current policy of the international community in Kosovo and Metohija, and a special case of political marketing of the international community. His colleague Zdenko Tomanovic explains that Ivanovic was indicted for being a member of a group, which is, as he said, a criteria that was abandoned by those states that introduced this theory into legal science.

 

Djuric: We will fight for greater rights and stronger support for Serbs (Tanjug)

The Head of the Office for Kosovo and Metohija Marko Djuric has stated that the future Serbian government will also fight for the rights of Kosovo Serbs to be greater and stronger. At a pre-election SNS convention in Strpce, Djuric said that the Serbian government and Aleksandar Vucic have not and will not sacrifice one single interest of the Kosovo Serbs for anything. “What I proudly want to tell you, the battle that you conducted here, the battle that we started together, led to the fact that more than half of Serbia will enter this battle with us for a better Serbia,” he said.

 

Schroeder: Serbia should move forward to EU, not backward (RTS/Tanjug)

It is important whether Serbia will move forward along the EU path, or decide to go backward, former German chancellor Gerhard Schroeder said on Thursday. Addressing foreign and domestic businessmen and young entrepreneurs in Belgrade, Schroeder said that for the EU, Serbia is a key country in the Balkans, and that is why its development is important not only for Germany, but also for entire Europe. He described as realistic Serbia’s goal to join the EU by 2020, voicing confidence that Serbia is an anchor of stability in the Balkans and should remain to be so after the forthcoming elections as well. It is my duty to support those political forces in Serbia pushing for the country’s EU path, Prime Minister Aleksandar Vucic in particular. A politically stable, socially fair and economically successful Serbia, which advances along its EU path, is in the interest of all of us in Europe, not only Serbia, Schroeder said. A European Serbia is also needed to make sure that the political situation and co-existence of peoples in the Balkans develop without tensions and to find a solution to the refugee crisis, the former German chancellor noted.

 

Frattini: EU will not allow Croatia to block Serbia (Tanjug)

Former vice-president of the European Commission and Italian Foreign Minister Franco Frattini is convinced that the EU will not allow any state, Croatia included, to block the opening of negotiation chapters for Serbia over a bilateral dispute. Frattini also describes Serbia’s goal to join the bloc by 2020 as realistic. The Italian politician, who has come to Belgrade to attend the final election rally of the Serbian Progressive Party (SNS), says he has witnessed a major development in combination with a social, economic and moral revolution. The European diplomat, who is also an advisor to Serbian Prime Minister Aleksandar Vucic, says the PM has demonstrated the capacity to follow the EU path, while at the same time preserving Serbia’s identity. For example, Vucic maintains traditional relations with the Russian Federation, but also attracts foreign investors from China and the United Arab Emirates. At the same time, a future Serbia could contribute to building the Europe of tomorrow that will not be based on sacrifice and austerity, but on prosperity, growth and solidarity, Frattini said.

 

Zheleznyak: Elections important for Serbia’s future policy (Tanjug)

The forthcoming parliamentary elections in Serbia are of high importance as Serbia’s future interior and foreign policy will depend on their outcome, Deputy Speaker of the Russian State Duma Sergey Zheleznyak said on Thursday. Zheleznyak, who is also a senior official of the United Russia party, extended thanks to the Serbian government for not imposing sanctions on Russia, despite the pressure from the United States and the European Union. Russia supports the efforts of the Serbian political forces to strengthen the country’s military neutrality, Zheleznyak told reporters at Belgrade’s Arena, where he is a guest at the final convention of the Serbian Progressive Party (SNS). As for the issues of Kosovo and Metohija and Republika Srpska, he said they should be solved in the interest of the Serb people.

 

Djurovic: Borders not stopping migration (Beta)

Asylum Protection Center director Rados Djurovic said in Subotica that although the Balkan route had formally been closed, refugees were still passing through and heading for the Hungarian-Serbian border and then continuing their journey onward. “Borders do not stop the process. Some of them enter Bulgaria from Turkey, then from Bulgaria they go to Serbia and there are those who come through Macedonia,” Djurovic said in a public debate on refugees. He said that according to the information at hand, refugees were successfully crossing the northern border into Hungary and then continuing from there, but if their entrance was made difficult, they could stay in Serbia for some time.

 

OSCE to collect votes on Sunday, take them to Raska, Vranje (Tanjug)

The OSCE Mission in Kosovo will collect votes on Sunday and then transport the ballot boxes to Raska and Vranje, in an effort to make it possible for eligible voters to cast their ballots in the Serbian parliamentary elections, the OSCE said in a release. The OSCE Mission will open five centers with connected branches across Kosovo, with OSCE staff at each of them, the organization said. The OSCE will be responsible for collecting votes and keeping the sensitive materials that will be used during the electoral process. The Republic Electoral Commission (RIK) provided the OSCE with the materials such as ballots and electoral rolls. The voting procedure will be the same as in 2014. After the completion of the electoral process, the OSCE will transport the collected votes to Raska and Vranje and hand it over to RIK for counting and accompanying procedures, the OSCE said.

 

Pre-election silence in Serbia (FoNet)

Pre-election silence started at midnight and it will last until the closing of polling stations at 8p.m. Sunday. Within these 68 hours, pre-election campaigns and sending political messages are forbidden. Election propaganda, holding of pre-election gatherings at public places and announcement of estimates of election results is considered to be a violation of election silence.

Placement and distribution of propaganda material close to polling stations is also forbidden.

From 7a.m. Sunday, when the polling stations open, Serbian citizens will elect the new national parliament and the Vojvodina provincial assembly, as well as most local assemblies. The upcoming parliamentary elections will see 20 electoral lists and a total of 3,270 candidates compete for seats, with 15 lists in the race for the 120 seats of the Vojvodina assembly. A total of 6,771,497 ballot papers will be printed for the elections and may be cast at 8,378 polling stations, including 29 in penitentiary institutions and 38 abroad. In Kosovo and Metohija, the elections will be held at 90 polling stations in 21 locations. RIK must announce the official results of the elections no later than on 28 April at 8p.m.

 

REGIONAL PRESS

 

Bakir Dautbasic not SBB’s candidate for the Council of Ministers anymore (Srna/Fena)

A candidate of the Alliance for a Better Future (SBB) for the vacant position in the Council of Ministers Bakir Dautbasic informed on 19 April the Presidency of SBB that in his best intention of making the political atmosphere in B&H more positive, he gave up on giving his candidacy for the position of a minister in the Council of Ministers. Meanwhile the President of the Alliance for a Better Future of B&H, Fahrudin Radoncic met in Sarajevo with the President of the Croatian Democratic Union (HDZ) B&H and B&H Presidency member Dragan Covic, after a long absence Radoncic from political life. At the meeting in Sarajevo, Covic and Radoncic expressed strong partnership and commitment to continue implementing reforms and achieving goals within the framework of Euro-Atlantic integration processes. Leader of the Alliance for a Better Future of B&H, Fahrudin Radoncic, said after a meeting with leader of HDZ B&H Dragan Covic that Ismir Jusko will be a new candidate for the B&H Minister of Transport and Communications, after Bakir Dautbasic dropped out of the position. Radoncic also pointed out that Bosniak-Croat relations haven’t been worse in a long time. During the meeting, the B&H Presidency member Dragan Covic informed Radoncic about the priorities of government at all levels and future cooperation and concluded that the ruling coalition is stable despite numerous challenges.

 

Federation of B&H House of Peoples unanimously adopts a Resolution on elections in Mostar (Fena)

The House of Peoples of the Federation of B&H Parliament unanimously passed a Resolution on the elections in the City of Mostar, asking the deputies of the Parliamentary Assembly, under their jurisdiction, to take all measures to ensure the organization of elections and the protection of the status of the unified City of Mostar. Representatives of the SDA and the SBB stated that a joint proposal for Mostar, stipulates a single city without any divisions.

 

Foreign ministry says Serbia’s protest note election campaigning (Hina)

The Croatian Ministry of Foreign and European Affairs has said that a note by the Serbian Foreign Ministry that claims that Croatian Foreign and European Affairs Minister Miro Kovac offends and disparages Serbia is just part of the election campaign in that country, reiterating that it wants good neighborly and partner relations with Serbia. “The Ministry of Foreign and European Affairs has been following with interest the election campaign in Serbia with which Croatia wants to have good neighborly and partner relations, based on values of respect for human dignity, freedom, democracy, equality, the rule of law and human rights, including minority rights,” the Ministry said in a press release on Thursday.

 

Croatia soon to take in first refugees from Turkey, Greece, Italy (Hina)

Croatia should be receiving the first Syrian refugees allocated to it in June, thirty of whom will be resettled from Turkey and ten refugees each to be relocated from Greece and Italy as part of the EU scheme for relocation and resettlement, Croatian Interior Minister Vlaho Orepic said in Luxembourg on Thursday. “The government has defined that in the period from June 8 to July 8 it will take in 30 people from Turkey and another ten each from Greece and Italy, that is a total of 50 people,” Orepic said in Luxembourg where he was attending a meeting of European Union Justice and Home Affairs Council. The council meeting, amongst else, discussed the implementation of the EU-Turkey agreement concluded last month which envisages that all illegal migrants arriving from Turkey to Greek islands have to be returned to Turkey. In exchange, the EU will directly take in one refugee from Turkey for each Syrian returned from Greece to Turkey. Earlier, the EU bloc’s member-states agreed to relieve the burden borne by Italy and Greece, countries on the exterior borders of the EU and to distribute refugees according to capabilities of each individual member state. The scheme envisages the relocation of refugees from member states that have so far received the highest number of Middle Eastern refugees to other EU countries whereas the agreement with Turkey refers to a resettlement program directly from third countries to the EU. The two programs envisage that Croatia takes in 1,600 people on the aggregate. “We will certainly do that, the government has decided resolutely and we have a firm stance that we need to share the responsibility of this joint problem,” Orepic said. He added that Croatia would soon pay its financial obligations toward Turkey for this year which amounts to 1.7 million euro. EU ministers today focused on the use and interoperability of databases and the recent Commission proposals on the smart borders package. They are expected to exchange views on the Commission’s communication on the reform of the common European asylum system. The Council will take note of progress on the proposal for a European border guard, on which the Council adopted its position on 6 April 2016. Orepic said that Croatia would deploy 140 people in the European border and coast guard.

 

Brajovic: Election results from Tivat should be expected on national level too (MINA)

Elections in Tivat surpass the significance of local elections, because they represent an overture for parliamentary elections and point in which direction we can expect things to develop on national level too, said the leader of Social-democrats (SD), Ivan Brajovic. He said that he’s proud and satisfied by the results of the elections in Tivat, having in mind that SD had their first Congress three months earlier, and that they got more than ten percent of the votes on these elections and four mandates, and became the second strongest party in the municipality. “Success that we had on elections is not a surprise for us, because since the foundation of SD we have met great support on the field given by our citizens, and not only in Tivat but in all of Montenegro,” Brajovic told MINA.  According to him, elections in Tivat are another confirmation of the righteousness of forming SD because it is now definitely clear that in short time we managed to protect the idea of original social democracy. “Elections in Tivat surpass the significance of local elections, because they represent an overture for parliamentary elections and point in which direction we can expect things to develop on national level too,” thinks Brajovic.  These elections are just first in many election successes to come for SD, and definitely a significant indicator of the strength that parties have nationally too, not only between SD and Social democratic Party SDP, but other parties as well.

 

Incident prevented: Protesters and supporters of GDOM, ran into each other (Telegraf.mk)

Disgruntled citizens led by the civil initiative “Protestiram” and supporters of GDOM on Thursday night intercepted at the crossroad near the Cathedral in Skopje – the first moving from the government in the direction of Boulevard Partizanski Odredi and the latter from the parliament also to Partizanski Odredi. Both groups intercepted at the crossroads, but the increased police presence and their willingness did not allow a physical impact. Only verbal words, whistles and insults can be heard. Organized by civil initiative “Protestiram” began the protest in front of the Special Public Prosecutor’s Office and continued to the EU Info Centre. Police forces blocked all roads and approaches between the buildings to the parliament where a rally was held organized by the Civil Movement for Defense of Macedonia (GDOM). The Police was also present at the European University and the boulevard Kliment Ohridski and many members of the Rapid Deployment Unit (RDU) are stationed at the Comedy Theatre. The protest took place peacefully, and banners of all colors could be seen, a symbol of the so-called Color Revolution. Among the demands of the “Protestiram” are withdrawal of the decisions to pardon and the resignation of President Gjorge Ivanov, the withdrawal of the decision to hold parliamentary elections on 5 June, involvement and presence of independent representatives of civil society in resolving the crisis and the formation of a transitional government that will fully implement urgent reform priorities from the Priebe report. On the other hand, GDOM sent a message that violence is not the solution and that only a peaceful way is the way to resolve the situation. Part of the crowd from GDOM waved the Macedonian flag on the Porta Makedonija.

 

Macedonia protests: Stop destruction, elections must be held, there is no backing off (Telegraf.mk)

Tens of thousands of people participated in the massive national gathering held on Thursday before the Parliament organized by the Civil Movement for Defense of Macedonia. It was attended by citizens from all cities in Macedonia and urged for calm tensions in the country, to stop the destruction and to go out to elections. At the end of the meeting the Civil Movement for Defense of Macedonia sent a message, or “Proclamation of Macedonia” which consists of four points from which, as was pointed out, there is no changing. Here is the “Proclamation of Macedonia” in four points: “We are clearly telling citizens of domestic and international public: Macedonia is all we have. In the name of the century of coexistence, we the GDOM stand against the destruction and against all black and gloomy scenarios Macedonia is faced before at this point. Our obligation and duty and choice is to protect our country with common sense and courage, wisdom and patriotism. Citizens said that we must have elections on 5 June 2016! GDOM requires elections to end the crisis, elections on June 5 because the people have the right to say what they think and feel. The elections are the essence of democracy, without elections there is no democracy. Those who are against the elections are against the people, against the will, against Macedonia. The People are the largest expert, negotiator, mediator or facilitator or an ambassador to their will. The people are the foundation of democracy, that is why the people require elections. People do not want scenarios in which someone uses a different weapon except the democratic one, the one that exists with its own voice, the direct participation to create its own destiny. We are not backing of we are not dropping off. In Macedonia, the state of Macedonia decides! There must be elections on 5 June. GDOM condemns and demands immediate cessation of all forms of violence against the Macedonian police and the immediate and unconditional halt to hooliganism and vandalism, the destruction of the national property and the Macedonian institutions. Each attack on the police is a blow to our common country, the Macedonian heroes, citizens, our history and our future. We will never allow dirt and disregard for the victims and the blood shed of the Ilinden soldiers, partisans of ASNOM, refugee children, the heroes who laid down their lives for Macedonia. We will never allow our culture not to be respected. We will never allow Macedonia to be humiliated. GDOM demands an end to destructive scenarios, an end to attempts to divide the people, an end to the fear and terror. Macedonia is the people-the people are Macedonia! Macedonia exists, Macedonia survives, and Macedonia wins. Long live Macedonia!”

 

Nikola Gruevski: SPO turned into SDSM’s inquisition instrument (MIA)

“It is pitiful that instead of being a professional and independent institution as all citizens expected, the Special Public Prosecution (SPO), turned into a party instrument of SDSM, with inquisition elements, and a very unprofessional behavior. This will take the party to a certain failure”, reads the statement by the VMRO-DPMNE President, Nikola Gruevski, regarding the case “TNT” started by SPO Thursday. Gruevski commented that the press conference of SPO on Thursday had a clear party rhetoric, which supports the opposition party SDSM. “I watched the press conference of SPO with great attention. As the press conferences so far, this one has pure party rhetoric, and even a person who does not know who has which function, would probably have thought that it was about one of the press conferences of SDSM, where they try to slander all of VMRO-DPMNE, especially me, as the party’s president, without a single evidence,” the written reaction of Gruevski read. He added that the SPO had fallen entirely under the control of SDSM, and has become their main instrument for political persecution of people of VMRO-DPMNE, with the goal to crush their reputation. “They mentioned my name at the press conference several times, and it was probably most important for them to say that I have been abolished, believing they will put me in the same corner as with the man they want as to govern, the man who claimed that is the most phone-tapped person, and there is still no recording, nor case, nor an investigation for Zoran Zaev opened by SPO,” Gruevski said. He added that SPO has no evidence against him. “The unprofessionalism of SPO is not only a political-party liking, and placing only one party at the function, but also not showing any minimal legal evidence against me, even a made-up one. That is because they have a case against me, which has no error, no criminal act, nor anything illicit. If for some of the other previously mentioned, they pulled out text messages with a man who had died a long time ago, and from which message it is clear that as responsible people and officials, in a situation when the demolition of ‘Cosmos’ was main media news, showed interest for the events, in order to be able to answer the multiple calls by the media, they have not succeeded to find anything of that sort about me,” Gruevski stated. Gruevski pointed that the “Cosmos” case is confirming that anyone committing crime will face the law. “If someone is a parliament member, or is wealthy, that does not mean he can do as he pleases, break the law; or if someone is not a parliament member, or is not wealthy, should suffer consequences for the crime he has done. Everyone is equal before the law, and should respect laws. In fact, the several investigations at that time, show that in the case ‘Cosmos’ the law has been broken, followed by the reaction of the officials,” Gruevski reacted.

 

EC regrets cancellation of Vienna leaders’ meeting (MIA)

We regret that the leaders’ meeting planned in Vienna on 22 April could not take place, European Commission Spokesperson Maja Kocijancic told MIA on Thursday. “We have consistently said that the breakdown of the Przino Agreement would have serious consequences for the country. We would deeply regret any retrograde steps that would move the country further away from its aspirations towards European Union accession,” says Kocijancic in a statement. She says that the EC remains available to assist the parties now and in the future, adding that the responsibility to ensure democratic progress and to make headway on the Euro-Atlantic path rests with the parties themselves, on behalf of the citizens of their own country. “They must now deliver,” says Kocijancic and announces there will be a statement with more details during the day. Earlier, an EC spokesman in Vienna said the leaders’ meeting has been cancelled because conditions for it had not been met.

 

INTERNATIONAL PRESS

 

Aleksandar Vucic Serbia’s hardline hawk turned friend of West (AFP, 21 April 2016)

BELGRADE: Serbian Prime Minister Aleksandar Vucic, who is bidding for another four years in power in Sunday’s general election, is a former ultra-nationalist and close ally of Slobodan Milosevic remade as a pro-European liberal. In a political transformation viewed by critics as pragmatic rather than ideological, the tall 46-year-old Vucic now leads Serbia’s efforts to join the European Union. Seen as a reliable Balkan partner — whilst also staying friends with traditional ally Russia — his “cooperative” approach, however, means the West has been prepared to “turn a blind eye” to concerns about both domestic policies and his attitude to criticism, according to political analyst Djordje Vukadinovic. A lawyer by training, Vucic joined the far-right Serbian Radical Party in 1993 and soon became one of its top officials, known for his hardline speeches. He fiercely defended the actions of ethnic Serb leaders during the 1992-95 war in Bosnia. “You kill one Serb and we will kill 100 Muslims,” he said in July 1995, just days after Bosnian Serbs killed almost 8,000 Muslim men and boys in the Srebrenica massacre. In 1998, he was appointed information minister by then-President Milosevic, the so-called “butcher of the Balkans” who later died while awaiting a verdict in his war crimes trial. As late as 2007, Vucic said his home would “always be a safe house for general Ratko Mladic,” the Bosnian Serb wartime commander who was then on the run from international prosecutors. Critics see Vucic as an authoritarian leader who has failed to live up to his reformist and graft-busting promises, instead sharply curtailing media freedom and centralizing decision-making. “There are very strong opinions about him on both sides,” James Ker-Lindsay, a Balkans specialist at the London School of Economics, told Agence France-Presse when the election was announced.

‘I have changed’

Vucic surprised observers in 2008 when he announced that he had split from the Radicals to form the center-right Progressives along with now President Tomislav Nikolic, advocating cooperation with the West. “I do not hide that I have changed… I am proud of that,” he told Agence France-Presse in an interview in late 2012. The refashioned Vucic has described the Srebrenica slaughter as a “horrible crime” and visited the site to pay his respects — although he was chased from the 20th anniversary ceremony last year by an angry stone-throwing crowd. Vucic’s political career skyrocketed after he was named deputy premier following the victory of his Serbian Progressive Party in 2012. He went on to the top job two years ago, winning widespread support with his populist rhetoric. He has pushed for better relations with former foe Kosovo — a key requirement of both sides’ EU membership bids — and won plaudits for showing compassion to refugees traveling through Serbia during the migrant crisis. He now presents himself as a tireless worker, the only person capable of attracting foreign investment and implementing the economic reforms called for by the EU and the International Monetary Fund. While successes include the recent sale of Serbia’s biggest steel mill to China’s HBIS, he has struggled to find buyers for other loss-making state companies — and promised cuts to the bloated public sector risk denting his popularity. Little is known about the premier’s private life, but he did allow a glimpse into his hobbies in 2009 when he appeared on the Serbian version of the hit TV show “Dancing With the Stars”.

 

Bosnia Having Trouble Obtaining Much Needed IMF Financing (Economy Watch, 21 April 2016)

Bosnia is struggling with growing budget deficit problems and is in desperate need of a new loan from the International Monetary Fund (IMF). Therefore, Bosnia’s government is trying to meet the last few requirements necessary to access a new IMF program that could get the nation about 500 million euros. If it fails, Bosnia faces a serious liquidity crisis. Some portions of Bosnia could run out of money by the end of the month. That would leave salaries, pensions, social welfare programs, and many other costs left unpaid. If the Baltic state can satisfy the IMF program’s requirements, it could finalize its application to the program by the end of May.

On Tuesday, Bosnian officials expressed an optimistic view of the nation’s chances to satisfy the program requirements in time to qualify and avoid a liquidity crisis. Internal struggles, however, still remain, as representatives of different regions and ethnic backgrounds struggle to find common ground on the measures. One of the IMF’s primary demands of Bosnia is tougher banking regulation. Bosnian Prime Minister Denis Zvizdić said the IMF even suggested that it might require the creation of a state regulatory authority to oversee these banking requirements. “There must be some kind of regulatory agency that will regularly supervise the activities of active banks,” he said on Tuesday. While enacting such a measure in such limited time could prove difficult, given the political tensions present in Bosnia, Zvizdić argued strongly for the banking authority. He suggested that the authority could help prevent bank failures, improve investor confidence, and help ward off allegations of impropriety. In recent years, three major Bosnian banks collapsed, ruined by poor management and possible corruption. As Zvizdić said in lobbying for the banking authority, “We cannot allow something like this to happen again.” Bosnia already has two regulatory agencies for banking; however, each is limited in its authority. The Bosnian people have long been wary of centralized government authority, and this has created the tension that is stalling the nation’s compliance with the IMF’s suggestions. In fact, some factions within the Bosnian government believe further IMF funding is the wrong solution. They believe the nation needs to suffer through the short-term pain of its financial troubles in favor of stronger long-term solutions, including increasing economic production and domestic investment. This view appears to be favored by a very vocal minority. In addition to the nation’s efforts to seek assistance from the IMF, it also intends to issue a number of bonds (worth approximately 20.4 million euros) in early May.

 

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Media summaries are produced for the internal use of the United Nations Office in Belgrade, UNMIK and UNHQ.  The contents do not represent anything other than a selection of articles likely to be of interest to a United Nations readership.

 

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