Slovenian President Visits Bosnia and Herzegovina

Slovenian President Milan Kucan paid a one-day official visit to Bosnia-Herzegovina on Thursday, 18 July. After his arrival to Sarajevo, President Kucan met with the presiding member of the Bosnia-Herzegovina presidency Beriz Belkic and the other two members of the three-member presidency Serb Zivko Radisic and Croat Jozo Krizanovic, as well as members of the Bosnian government. President Kucan has also met with Bosnian Foreign Minister Zlatko Lagumdzija and visited the village of Grdonjic to inspect the progress of demining carried out by the Slovenian-managed International Trust Fund for demining and Mine Victims Assistance (ITF). As part of his one-day visit to BH, Kucan also paid a visit to Slovenian soldiers participating in SFOR and met with SFOR commander General John Sylvester and held a private meeting with former head of the Bosnian presidency Alija Izetbegovic.

At the beginning of the press conference, held after separate talks with BH presidency and government, Kucan stressed that his visit is an affirmation of good relations between the two countries. He added that his message is that Slovenia wants to be perceived by BH as a friendly country in the future as well.

Relations between Slovenia and BH are very wholesome, said Kucan, adding that some relatively difficult issues exist. He was, however, firmly convinced that overall the economic relations between both countries are very positive and should include Slovenian investments, claims of both sides, former joint investments, trade and trade deficit, as well as demands of Bosnian citizens who formerly held accounts in Slovenian Ljubljanska banka.

Kucan said that both governments should sit down and overview the balance sheet of bilateral economic relations. He announced he would pass on such a proposal to the Slovenian government.

Belkic added that the talks examined the entire economic relations between both states, not just the Bosnian trade deficit, and established that Slovenia is a top foreign investor in BH. He stressed that Slovenia has directly invested US$ 360 million in BH, which has provided jobs for around 3,000 people. Slovenia also transferred its quota for employment of 900 persons in Germany to Bosnia, something that BH has used to its advantage.

The presidents agreed that the trade deficit is not in the interest of either country and should not be solved with administrative measures and limited trade, but by finding new and higher levels of co-operation. Belkic mentioned the enhancement of joint investments, transfer of technologies and a joint penetration to third markets.

BH will endeavour to speed up the ratification of a bilateral free trade agreement, which is asymmetrical to Bosnia's advantage, pointed out Belkic.

The pair also touched on the visa regime between both countries, in regards to which Belkic said that Kucan promised that Slovenia would try to reduce administrative and technical barriers, perhaps in the sense of opening up new consulates or simplifying procedures.

Kucan also expressed Slovenia's readiness to help BH with advice and experience on the way to the EU, because Slovenia sees BH as a soon-to-be ally in NATO and partner in the EU.

The Slovenian president was given a special recognition by the BH presidency for his contribution to the reconstruction of BH. Kucan thanked BH and emphasized that he understands the recognition as one to the Slovenian state for its principles and support given to BH.

Before Kucan concluded his one-day visit to BH, Slovenian President and Beriz Belkic attended the opening of a new entertainment centre in Sarajevo of the Slovenian casino chain Hit.

The EUR 6m-worth entertainment centre, the opening of which was also attended by the chairman of Hit Branko Tomazic and representatives of a number of Slovenian companies, spreads over 1,500 square metres and encompasses a casino, two restaurants and an entertainment stage. Hit expects that the centre will attract 150 guests daily and that its investment would pay off by 2009.

Earlier in the afternoon, Kucan and Belkic paid a visit to the plant of Slovenian home appliance maker Gorenje that stands outside Sarajevo. The CEO of Slovenia's largest exporter Joze Stanic said that Gorenje - which commands 75 percent of the Bosnian market - is proof that trade is a two-way process, adding that Gorenje could swiftly work to balance trade between the two countries through co-operation with small enterprises.

Belkic assessed that economic relations between the two countries must be viewed as a whole. Kucan, on the other hand, stressed that investments in Bosnia stay in the country and that nobody has the right to destroy good relations that the two countries have established over the last ten years, including during the war in Bosnia.

During his short meeting with Slovenian businessmen in Bosnia, Kucan said that they represent the strong link and the messengers of Slovenian business interests in Bosnia. He reminded of the integral nature of relations between Slovenia and Bosnia, which extend from political to cultural ties, while stressing that energy must be placed in nurturing business ties.

Trade between the two countries amounted to US$ 460m last year, up 6.2% over the year before. Slovenian exports stood at US$ 397.4m (up 6.2%) and imports from Bosnia at US$ 62.4m (up 7.6%). Exports to Bosnia rose by 13.5% year on year in the first five months of this year (EUR 192.25m), while imports dropped by 11.8% in the same period (EUR 26.5m).

Slovenia is the largest foreign investor in Bosnia and is trying to make up for the imbalance in trade with direct investments. Bosnia has over 200 joint ventures with Slovenian part ownership and over 3,000 new jobs have been created via Slovenian investments. Slovenian companies have invested about US$ 150m in Bosnia-Herzegovina so far. Moreover, after Croatia and Italy, Slovenia is Bosnia's third partner in economy.

Source: Slovene Press Agency STA