therefore, you are all encouraged to use the branch and, of course, all other licensed banks in your area, to save money and undertake other financial transactions. similarly, it is my expectation that bank gaborone w ill take full advantage of the botsw ana payments and other public infrastructure, partnership w ith mobile operators and other electronic payments systems, to enhance financial inclusion ; and this includes providing the much - needed support for the informal businesses in botsw ana in general and maun, in particular. distinguished guests, ladies and gentlemen, in addition to w hat i have just said, i w ish to implore the maun community to engage banks w ith viable borrow ing proposals that are sustainable and can yield positive returns. equally, important, and having obtained loans and other credit facilities, borrow ers should honour their obligations by adhering to the repayment programme agreed w ith banks. distinguished guests, i am making this point because the bank of botsw ana is concerned about the recent observed upw ard trend in non - performing loans. while this trend could be, in part, due to sluggish global economic activity and idiosyncratic business performance and environment, there is some evidence of lack of financial discipline on the part of some individuals and poor management practices by some businesses. there is also an undesirable creeping culture, on the part of some customers of banks, of failing to repay their obligations to banks according to the agreed schedule. let me, therefore, take this opportunity to remind you, distinguished guests that, in the main, banks in botsw ana are funded mainly by depositors / savers ’ funds. therefore the board and management of a bank have a fiduciary duty and responsibility to ensure that the lending and credit underw riting standards are sound ; the bank is managed in a safe and prudent manner, to safeguard depositors ’ funds and ensure that these borrow ed funds are not lost through uncollectable loans. in this context, i should therefore caution that, w here a borrow er is in default, the bank is entitled to institute law ful, procedural and ethical recovery procedures including attachment and liquidation of property pledged as collateral to recover its money. moreover, providing for a loss or w riting off a loan in the bank ’ s books, as a non - bankable asset, does not extinguish the debt the customer ow es to the bank. in this case,

speech of the cbbh governor senad softic, ph. d. at the first europe - wide international monetary fund regional economic outlook entitled „ regional economic perspectives for europe “. sarajevo, november, 13, 2017 honorable guests dear mr. decressin, panelists, coleagues, ladies and gentlemen. it is my pleasure to welcome you to premises of the central bank of bosnia and herzegovina today for presentation of the first europe - wide imf regional economic outlook. thank the imf for choosing bosnia and herzegovina for such event. we are meeting today at a good time for europe and bosnia and herzegovina. economic growth is gaining strength. in the euro area, growth is expected to remain about 2 percent in 2018. inflation, big concern for us central bankers, is expected to remain stable in 2018. in bosnia and herzegovina, growth was 3. 1 percent in 2016. we expect the recovery to continue. the central bank of bosnia and herzegovina continues to maintain monetary stability through strict implementation of the currency board arrangement, as defined in the law. inflation remains firmly anchored to price developments in the euro area. we expect prices not to increase by more than 1. 5 percent in 2018. it is very important for us in bosnia and herzegovina that growth in the european union is sustained over the medium term. the eu is our largest trading partner and foreign investor. a large bosnian diaspora sends remittances close to 12 percent of gdp per year. these are very strong economic links that should be considered together with our diaspora as important resource for economic development of the country. however, policy makers in europe, and also here in bosnia and herzegovina, should take advantage of the recovery to implement ambitious economic measures and structural reforms. for bosnia and herzegovina, we should focus on three broad areas : 1. first, we need to improve the composition of the budgets at all levels of government. the general governments of bosnia and herzegovina are on track to achieve a combined overall fiscal surplus for the second year in a row. however, there needs to be a reorientation of spending towards infrastructure, to help catch up with european standards, and to improve connectivity and competitiveness of our economy. 2. second, we need to continue to strengthen the single financial system of bosnia and herzegovina. the banking system in bosnia and herzegovina is strong and stable. there is enough liquidity and sufficient capital. progress was made since 2015 in putting in place new banking legislation that brings bosnia and herzegovina banking system closer to european standards. still