​Interview of Prime Minister Cvijanovic with the Euroblic Daily published on 10 October 2017  

10.10.2017.  

Despite the fact that a lot of money was far-fetched due to the fact that SDS, PDP and NDP blocked that money in Sarajevo, the Republic of Srpska would successfully close this year and as of next year would have the increment of pensions by 2 per cent and introduce a monthly allowance for unemployed mothers of the newborn babies in the amount of the lowest salary in the RS, i.e. BAM 405.

This is what Prime Minister Zeljka Cvijanovic pointed out in her interview with the Euroblic  reassuring us that even without the IMF money, Republic of Srpska would manage to regularly pay its financial obligations and carry on with the ongoing projects – construction of the hospital in East Sarajevo, finishing the Banja Luka – Doboj highway and reconstruction of the Clinical Center in Banja Luka.

- It would be much easier if the people in Sarajevo were not blocking our agreements with international financial institutions and if they continue doing so, there is always option B. The blockade from Sarajevo would not break the Republic of Srpska which, in spite of all those obstructions had a 3.5 % GDP growth last year, though the most optimistic projection was 2.9 %. The employment is going up and the number of unemployed is declining. We also had a record export-import coverage ratio of 70% in the first half of the year. All those figures are showing a movement forward. – Prime Minister Cvijanovic said having added that she is personally very happy because of the allowance for unemployed mothers.  

- We had intended to introduce this allowance as of the beginning of 2017, but our efforts had been impeded by those sitting in Sarajevo. Had we had the opportunity to cover some expenses with favorable arrangement with IMF, things would have been different. They deprived us of this measure while we could distribute this allowance for ten months now – Cvijanovic said.

 Restructuring of the Government

Will you propose restructuring of the Government by the end of the term?

- I think it would be much better for some future Government to have a new organization. I have it prepared, few versions, and I hope I would have an opportunity to present it in a couple of months to come. This is a set organization scheme but I am sure that certain things have been overcome.  

You  are travelling to the United States for the Annual Meetings of the International Monetary Fund. Would you also talk about the credit arrangement that we are waiting for months due to the fact that the Law on Excise Taxes is not adopted?

- The meetings that you are referring to are regular meetings of the IMF and the World Bank but it would also be an opportunity to discuss the issues which remained unfulfilled. Nevertheless we would feel very relaxed in this situation since Republic of Srpska fulfilled its part of the job some ten months ago. We would talk about certain projects with the World Bank with regard to which the Republic of Srpska passed certain regulations related to employment support. However, the problem occurred again in the BiH Parliament which had not yet ratified that program. Another issue is restructuring of the Republic of Srpska Railways which also requires the World Bank. We are already deep in those talks hoping that certain final things could be done soon.

How realistic is it to bring the arrangement with IMF to reality knowing that the key requirement related to excise tax is not fulfilled?

- IMF clearly stated there were no more deadlines. It means, you have got the tasks, show that you are capable to fulfill them. However, it should be seen as a chain reaction. Had the things gone as they should, we should have withdrawn BAM 150 million by now. Then the projects financed by the EBRD and the World Bank are in question while an additional problem is the EU threatening to re-direct the money intended for BiH on the basis of the Transport Community to other countries in the region. The latest information that the deadline for the Law on Excise Tax could be moved to the end of October and if it does not happen by then the EU Commissioner might decide to deny it and send to other countries. The stake is high but people at BiH level are not being serious.

Candidacy

Will you run for some important function at the forthcoming elections as the SNSD candidate?

- I really do not know. SNSD has not discussed the issue of candidacies yet and I do not think it would be subject of discussion in the next couple of months. The analysis and assessments would be done to decide which candidates are the best for which position. I heard media reports that I would go to BiH Parliament, then that I would be the Chairman of the Council of Ministers and some other things. I know that there are a lot of demands and responsibilities as long as I am running the Government and that in four and a half years there are more than it would take in 15 years in a normal political mandate.

If those loans were not executed, shall it affect the stability of the budget of the RS?

- It would be much better if we had those funds available. We planned to have those funds this year as well as last year but they never came. We are used to this and prepared for the situation that there is no money from IMF. Therefore, it would be much easier if there were but we are not unprepared for a situation without the IMF arrangement since we not only survived but became much more efficient in fulfilling our obligations.

Chairman of the Council of Ministers Denis Zvizdic stated recently that IMF was concerned about the "level of deficit in the RS".

- Zvizdic is not telling the truth. IMF has denied his statements and stood behind the data provided by the Government of the Republic of Srpska. Zvizdic only wanted to move the focus from the fact that they have not fulfilled their part of obligations and therefore needed someone to blame which is usually the Republic of Srpska, Zvizdic has a problem in the BiH Parliament and is now trying to find another address to blame.

The pensions in Republic of Srpska will be 3% higher as of October. Can we expect other increments?

- The Government is determined to increase pensions in continuity if that does not affect the budget and main costs and that we could still move forward and provide the rise of pensions. In the past several years we increased the pensions by 11.5% in few steps. Now that increase is three percent and in the second quarter it would be additional two percent. More importantly, we have secured the regularity of payment of pensions. Since the beginning of 2016, pensions are included in the treasury system and occupy budget position No. 1 meaning there are no ques and thinking about the date.

How do you comment the current situation in the RS National Assembly? Can the opposition parties endanger the functioning of the institutions if they continue obstructing the work of the RS National Assembly?

- I am asking them if they would be block the RSNA when we would change the law that would enable unemployed mothers to get maternity allowance of BAM 405. Maybe they have an interest to block certain positive things since they have been working at the expense of the people and the institutions of the Republic of Srpska by blocking all possible funds that had been intended for the RS in Sarajevo. If their political bid were to obstruct other people in the RS NA to do their job, then it is a pitiful bid. The citizens have recognized their behavior in Sarajevo where they exhausted us with their complaisant attitude toward Bakir Izetbegovic and fulfilling mana things that fit Sarajevo political agenda. There are serious people in the RS NA who want to do their job in a responsible manner.

How would the Government and the parliamentary majority act in this situation?

- The government and the parliamentary majority want to work properly and to do their best to provide high quality regulations and nobody would hinder our work. They have hundreds of ways to be whatever they wished but we would not allow them to discredit the RS institutions and obstruct their work. There are aplenty of things we need to do such as the budget, economic policy, maternity allowances... They have seen some scenarios and are running out of ideas so they resort to things like the latest one.

How bad was the lack of cooperation of the ministers from the RS in the Council of Ministers and the RS Government?

- If somebody told me few years ago that RS representatives in joint institutions would treat the RS institutions and the RS citizens in that way, I would not think it possible. I would not believe that those were the same people capable to do no matter what I thought of them personally and politically. Thanks to them, a lot of money which should have reached the people and the citizens had remained unused. Since the very first day when they took over the power in Sarajevo, that was a classical revenge only because they had no power in the RS. Izetbegovic and SDA only want to get even with the RS institutions and they only joined that train with a couple of cars of their own.

Republic of Srpska is ahead in fulfilling its part obligations with regard to the EU. To which extent is Sarajevo blocking the European path of BiH?

- We tried to be helpful in the Parliament of BiH with regard to the excise taxes to save the day. However, instead of appreciating that, they are attacking us. As for the Questionnaire – for months we kept listening those in power in Sarajevo making excuses to Brussels and blaming the RS for not submitting the answers. Republic of Srpska submitted the answers long time ago but they did not foresee a situation where they have to apply certain procedures and engage in translation of the answers. They kept promising the candidate status and kept postponing it, this is not what a serious Government does. You cannot drag the Europeans anymore no matter how much they wanted to send a positive image about BiH.  

In your assessment when will BiH get the candidate status?

- I do not want to predict that, it is very inconvenient in this kind of state. Here, some people are only posing and promising, and some are working, the latter is the Republic of Srpska Government. It is not serious t make any such predictions.