Transcript Frozen Foreign Currency Account

Frozen Foreign
Currency Account
Fiscal Sustainability
Amendments to the Law
on FFCA
Payout
period being shortened
from 13 years to 5 years; and
Increase
accrued interest from
1/2 % to between 5% - 13%.
5 Year versus 13 Year
Payout
1,200,000,000
1,000,000,000
800,000,000
600,000,000
400,000,000
200,000,000
0
1st
year
3rd
year
5th
year
7th
year
9th
year
11th
year
13th
year
Effects of the Amendments
Raises
the total cost to
approximately KM 4.2 billion.
Increase
by KM 1.8 billion or
78% in the amount to be paid.
Represents
26% of GDP.
Neighboring Countries
Successor states of ex
SFRY
Interest
rate
Payout
period
Republic of Croatia
5%
20 Years
Republic of Slovenia
6%
10 Years
Republic of Macedonia
2%
10 Years
Serbia and Montenegro
2%
15 Years
BiH Amendments
5 –13 % 5 Years
Put
another way:
1.8 billion KM= 3years of
wages of all teachers in BiH
or
Full year pension for BiH
pensioners.
