II 

115TH CONGRESS 

1ST SESSION S. 864 

To promote development goals and the strengthening of the private sector 

in Bosnia and Herzegovina. 

IN THE SENATE OF THE UNITED STATES 

APRIL 6 (legislative day, APRIL 4), 2017 

Mrs. SHAHEEN (for herself and Mr. WICKER) introduced the following bill; 

which was read twice and referred to the Committee on Foreign Relations 

A BILL 

To promote development goals and the strengthening of the 

private sector in Bosnia and Herzegovina. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Balkan Economic 

5 Partnership Act’’. 

6 SEC. 2. PURPOSE AND FINDINGS. 

7 (a) PURPOSE.—The purpose of this Act is to support 

8 economic opportunity and political progress in Bosnia and 

9 Herzegovina through the creation of an enterprise fund 


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1 that will provide financial investment and technical assist2 ance to small and medium-sized enterprises. 

3 (b) FINDINGS.—Congress makes the following find4 ings: 

5 (1) The United States has a strong interest in 

6 ensuring the gains in stability and reconciliation 

7 made since the end of the Bosnian War in 1995 are 

8 not overtaken by difficult economic conditions. 

9 (2) In 2014, protests broke out across Bosnia 

10 and Herzegovina as a result of widespread frustra11 tion among the populace regarding the economy, 

12 which is currently experiencing an unemployment 

13 rate of more than 40 percent. 

14 (3)(A) A crucial element for economic progress 

15 in Bosnia and Herzegovina is robust growth among 

16 small and medium-sized enterprises (SMEs), which 

17 have struggled to access necessary financing. 

18 (B) Although the private sector credit-to-GDP 

19 ratio in Bosnia and Herzegovina grew from 25 per20 cent in 2001 to over 65 percent in 2008, it has 

21 failed to grow in the years since, and is significantly 

22 less than the average for advanced economies. 

23 (C) Bank lending, which grew similarly rapidly 

24 before 2008, has grown barely more than 1 percent 

25 per year since then. 


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1 (D) International financial institutions and for2 eign-owned private investment funds active in Bos3 nia and Herzegovina have provided growth finance 

4 for larger companies and infrastructure project fi5 nancing, but have not substantially invested in 

6 SMEs. 

7 (4)(A) Bosnia and Herzegovina’s demographic, 

8 income and geographic characteristics are promising 

9 for SME growth. 

10 (B) Bosnia and Herzegovina is a market of al11 most 4,000,000 people, whose per capita income has 

12 grown by almost 50 percent in less than a decade, 

13 and substantial growth remains in order to achieve 

14 income parity with its Balkan neighbor economies. 

15 (C) Bosnia and Herzegovina currently imports 

16 almost $10,000,000,000 of goods per year, a sub17 stantial portion of which could be substituted for by 

18 domestic SME production. 

19 (5) To help foster and support the fledgling pri20 vate sector in Central and Eastern Europe after the 

21 fall of the Berlin Wall, Congress, through enactment 

22 of the Support for East European Democracy 

23 (SEED) Act of 1989 (22 U.S.C. 5401 et seq.) and 

24 the FREEDOM Support Act (22 U.S.C. 5801 et 

25 seq.), authorized nearly $1,200,000,000 for the 


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1 United States Agency for International Development 

2 (USAID) to establish 10 new investment funds (col3 lectively known as the ‘‘Enterprise Funds’’) to both 

4 support economic development objectives and realize 

5 substantial financial returns. 

6 (6) The Enterprise Funds— 

7 (A) channeled approximately 

8 $10,000,000,000 of public and private funding 

9 into more than 500 enterprises in 19 countries; 

10 (B) leveraged $6,900,000,000 in private 

11 investment capital from outside the United 

12 States Government; 

13 (C) provided substantial development cap14 ital where supply was limited; 

15 (D) created or sustained more than 

16 300,000 jobs through investment and develop17 ment activities; 

18 (E) funded $80,000,000 in technical as19 sistance to strengthen the private sector; and 

20 (F) are expected to recoup 177 percent of 

21 the original USAID funding. 

22 (7) Enterprise funds established in partnership 

23 with United States partners, such as Poland, Hun24 gary, Albania, Russia, and other European counVerDate Sep 11 2014 01:59 Apr 15, 2017 Jkt 069200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S864.IS S864

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1 tries, have proven beneficial to the economies of such 

2 countries. 

3 (8) Creating a similar fund in close partnership 

4 with the people of Bosnia and Herzegovina would 

5 help sustain and expand economic reform efforts in 

6 Bosnia and Herzegovina and empower entrepreneurs 

7 to create urgently needed employment opportunities. 

8 (9) Establishing an enterprise fund for Bosnia 

9 and Herzegovina would— 

10 (A) help improve financial institutions 

11 within the country; 

12 (B) provide debt, equity, and other invest13 ment vehicles for commercially viable SMEs; 

14 and 

15 (C) make the investment environment 

16 more attractive to domestic and international 

17 investors. 

18 SEC. 3. PURPOSES OF BOSNIA AND HERZEGOVINA-AMER19 ICAN ENTERPRISE FUND. 

20 (a) IN GENERAL.—The purpose of the Bosnia and 

21 Herzegovina-American Enterprise Fund is to promote 

22 more widely shared prosperity through private sector de23 velopment and the policies and practices conducive thereto 

24 in Bosnia and Herzegovina, including through loans, 

25 microloans, equity investments, insurance, guarantees, 


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1 grants, feasibility studies, technical assistance, capacity 

2 building of investees and other relevant organizations, 

3 joint ventures, and other measures. 

4 (b) PROMOTION OF PRIVATE SECTOR DEVELOP5 MENT.—The Bosnia and Herzegovina-American Enter6 prise Fund shall promote private sector development 

7 through— 

8 (1) the initiation and expansion of employment 

9 and profitability of private enterprises, particularly 

10 small and medium-sized enterprises; 

11 (2) the modeling, promotion, and dissemination 

12 of sound corporate governance and law-abiding 

13 Western business practices; 

14 (3) the promotion of policy reforms to improve 

15 the business enabling environment and facilitate for16 eign and domestic investment; and 

17 (4) the demonstration that private sector in18 vestment can be undertaken profitably. 

19 SEC. 4. BOSNIA AND HERZEGOVINA-AMERICAN ENTER20 PRISE FUND. 

21 (a) DESIGNATION.—The President is authorized to 

22 designate a private, nonprofit organization (to be known 

23 as the Bosnia and Herzegovina-American Enterprise 

24 Fund) to receive funds made available under this Act for 

25 the purposes specified in section 3. 


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1 (b) BOARD OF DIRECTORS.— 

2 (1) APPOINTMENT.—The Bosnia and 

3 Herzegovina-American Enterprise Fund shall be 

4 governed by a Board of Directors, which shall be 

5 comprised of 7 private citizens of the United States 

6 appointed by the President of the United States in 

7 consultation with the Administrator of the United 

8 States Agency for International Development. The 

9 Board is authorized to elect up to 3 additional mem10 bers who are citizens of Bosnia and Herzegovina if 

11 agreed to unanimously by all members of the Board. 

12 (2) QUALIFICATIONS.— 

13 (A) BUSINESS EXPERIENCE.—Four mem14 bers of the Board of Directors shall be selected 

15 from among people who have had successful 

16 business careers and demonstrated experience 

17 and expertise in international and particularly 

18 emerging markets investment activities, such as 

19 private equity or venture capital investment, 

20 banking, finance, strategic business consulting, 

21 or entrepreneurial business creation, and back22 grounds in priority business sectors of the 

23 Fund. 

24 (B) DEVELOPMENT EXPERIENCE.—Three 

25 members of the Board of Directors shall be seVerDate Sep 11 2014 01:59 Apr 15, 2017 Jkt 069200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S864.IS S864

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1 lected from among people with significant prior 

2 experience in development and an expert under3 standing of development priorities for Bosnia 

4 and Herzegovina. 

5 (3) UNITED STATES GOVERNMENT LIAISONS TO

6 THE BOARD.—The President shall appoint the 

7 United States Ambassador to Bosnia and 

8 Herzegovina, or the Ambassador’s designee, as well 

9 as the Assistant Administrator of the United States 

10 Agency for International Development for Europe 

11 and Eurasia, or the Assistant Administrator’s des12 ignee, as liaisons to the board. 

13 (c) GRANTS.— 

14 (1) IN GENERAL.—There is authorized to be 

15 appropriated for the Department of State for fiscal 

16 year 2018 $30,000,000— 

17 (A) to carry out the purposes set forth in 

18 section 3 through the Bosnia and Herzegovina19 American Enterprise Fund; and 

20 (B) to pay for the administrative expenses 

21 of the Bosnia and Herzegovina-American En22 terprise Fund. 

23 (2) COMPLIANCE REQUIREMENTS.— 

24 (A) IN GENERAL.—Grants may not be 

25 awarded to the Bosnia and Herzegovina-AmerVerDate Sep 11 2014 01:59 Apr 15, 2017 Jkt 069200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S864.IS S864

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1 ican Enterprise Fund under this section unless 

2 the Fund agrees to comply with the require3 ments under this section. 

4 (B) GRANT AGREEMENT.—The grant 

5 agreement between the United States Agency 

6 for International Development and the Bosnia 

7 and Herzegovina-American Enterprise Fund 

8 shall state that the Fund shall end its reinvest9 ment cycle not later than December 31, 2033, 

10 unless the Secretary of State, in consultation 

11 with the Administrator of the United States 

12 Agency for International Development, and 

13 after consultation with the appropriate congres14 sional committees, determines that the Fund 

15 should be extended. 

16 (C) PREVENTION OF MONEY LAUNDERING

17 AND TERRORIST FINANCING.—The grant agree18 ment between the United States Agency for 

19 International Development and the Bosnia and 

20 Herzegovina-American Enterprise Fund shall 

21 state that the Fund shall comply with proce22 dures specified by the Secretary of State to en23 sure that grant funds are not provided by the 

24 Fund to or through any individual, private or 

25 government entity, or educational institution 


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1 that advocates, plans, sponsors, engages in, or 

2 has engaged in, money laundering or terrorist 

3 activity or, with respect to a private entity or 

4 educational institution, that has as a principal 

5 officer of the entity’s governing board or gov6 erning board of trustees any individual that has 

7 been determined to be involved in or advocating 

8 money laundering or terrorist activity or deter9 mined to be a member of a designated foreign 

10 terrorist organization. 

11 (D) DISPOSITION OF ASSETS.—The assets 

12 of the Bosnia and Herzegovina-American En13 terprise Fund at the time the Fund is dissolved 

14 shall be returned to the General Fund of the 

15 United States Treasury and used to reduce the 

16 debt of the United States. 

17 (E) AUTHORIZATION OF LEGACY FOUNDA18 TION.—In the event the assets of the Fund at 

19 the end of the reinvestment cycle specified in 

20 subparagraph (B) exceed the total amount ap21 propriated or otherwise made available to the 

22 Fund by the United States Government, the 

23 Secretary of State, in consultation with the Ad24 ministrator of the United States Agency for 

25 International Development, is authorized to diVerDate Sep 11 2014 01:59 Apr 15, 2017 Jkt 069200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S864.IS S864

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1 rect any such excess funds to a foundation for 

2 activities consistent with the purposes specified 

3 in section 3. 

4 (d) NOTIFICATION.— 

5 (1) IN GENERAL.—Not later than 15 days be6 fore designating an organization to operate as the 

7 Bosnia and Herzegovina-American Enterprise Fund 

8 pursuant to subsection (a), the President shall pro9 vide the information described in paragraph (2) to 

10 the Chairman and Ranking Member of the appro11 priate congressional committees. 

12 (2) INFORMATION.—The information described 

13 in this paragraph is— 

14 (A) the identity of the organization to be 

15 designated to operate as the Bosnia and 

16 Herzegovina-American Enterprise Fund pursu17 ant to subsection (a); 

18 (B) the name and qualifications of the in19 dividual who will serve as Chairman of the 

20 Board of Directors; and 

21 (C) the amount of the grant intended to 

22 fund the Bosnia and Herzegovina-American En23 terprise Fund over the lifetime of the fund. 


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1 SEC. 5. REPORTS. 

2 (a) ADMINISTRATIVE EXPENSES.—Not later than 1 

3 year after the date of the enactment of this Act, and annu4 ally thereafter until the Fund is dissolved, the Fund shall 

5 submit to the appropriate congressional committees a re6 port detailing the administrative expenses of the Fund, in7 cluding any costs incurred by private firms hired to aid 

8 in the management of the fund. 

9 (b) GAO REPORT.— 

10 (1) INITIAL REPORT.—Not later than 3 years 

11 after the date of the enactment of this Act, the 

12 Comptroller General of the United States shall sub13 mit to the appropriate congressional committees a 

14 report that examines— 

15 (A) the status of the Fund’s investments; 

16 (B) the Fund’s progress in establishing 

17 key management structures to support its mis18 sion and operations; and 

19 (C) the extent to which the Fund has com20 plied with requirements in the grant agree21 ments. 

22 (2) UPDATES.—The Comptroller General shall, 

23 for the duration of the Fund and at the request of 

24 the appropriate congressional committees, provide an 

25 updated report on the Fund and any successor orga26 nization. 


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1 (c) INDEPENDENT REPORTS.—Not later than July 1, 

2 2022, and July 1, 2030, the Administrator of the United 

3 States Agency for International Development shall com4 mission a report, to be completed by an independent, 

5 third-party organization, evaluating the performance of 

6 the Bosnia and Herzegovina-American Enterprise Fund 

7 with respect to the purposes set forth in section 3. The 

8 report shall be made available to the appropriate congres9 sional committees. 

10 (d) APPROPRIATE CONGRESSIONAL COMMITTEES

11 DEFINED.—In this section, the term ‘‘appropriate con12 gressional committees’’ means— 

13 (1) the Committee on Foreign Relations and 

14 the Committee on Appropriations of the Senate; and 

15 (2) the Committee on Foreign Affairs and the 

16 Committee on Appropriations of the House of Rep17 resentatives. 

18 SEC. 6. OPERATION PROVISIONS. 

19 (a) APPLICABLE PROVISIONS.—Subsections (d)(5), 

20 (g), (h), (i), (k), (l), (m), (n), (o), and (p) of section 201 

21 of the Support for East European Democracy (SEED) 

22 Act of 1989 (22 U.S.C. 5421) shall apply with respect 

23 to the Bosnia and Herzegovina-American Enterprise Fund 

24 in the same manner as such provisions apply to Enterprise 


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1 Funds designated pursuant to subsection (d) of such sec2 tion. 

3 (b) REINVESTMENT.—Returns on investments of the 

4 Bosnia and Herzegovina-American Enterprise Fund and 

5 other payments to the Fund may be reinvested by the 

6 Fund and used to fund noninvestment projects without 

7 further appropriation by Congress. 

8 SEC. 7. BEST PRACTICES AND PROCEDURES. 

9 To the maximum extent practicable, the Board of Di10 rectors of the Bosnia and Herzegovina-American Enter11 prise Fund should adopt the best practices and procedures 

12 used by Enterprise Funds, including those for which fund13 ing has been made available pursuant to section 201 of 

14 the Support for East European Democracy (SEED) Act 

15 of 1989 (22 U.S.C. 5421). 

Æ 


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