The Central Bank of Bosnia and Herzegovina MARKET OF GOVERNMENT SECURITIES IN BIH Presentation by:...
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- Slide 1
- The Central Bank of Bosnia and Herzegovina MARKET OF GOVERNMENT
SECURITIES IN BIH Presentation by: Ljubia Vladui Vice Governor of
the Central Bank of BiH Regional Investment Forum 2005 Sarajevo, 9
November 2005
- Slide 2
- Participants in the market: Commissions for Securities, stock
exchanges (Sarajevo and Banja Luka); registries of securities,
brokerage houses and commercial banks B&H Capital Market
Council the body coordinated by the CBB&H which unites all the
market participants: the CBB&H, Ministry of Finance and
Treasury of B&H, Entity Ministries of Finance, Commissions for
Securities of both Entities, commercial banks and the stock
exchanges. Capital Market in BiH: 2
- Slide 3
- Capital Market and Stock Exchanges in B&H (1) 3
- Slide 4
- Capital Market and Stock Exchanges in B&H (2) SASE 65% BLSE
35% The total turnover on stock exchanges in B&H in 2004
148.806.343,31 Sarajevo stock exchangeBanja Luka stock exchange
97.264.926,57 51.541.416,73 4
- Slide 5
- The Law on Debt Issuance, Debt and Guarantees of Bosnia and
Herzegovina Agreement with the Ministry of Finance and Treasury of
B&H on performing fiscal agent tasks for securities Entity Laws
on Debt Issuance, Debt and Guarantees Contracts with Registry of
Securities in FBiH and Central Registry of Securities of RS
Contracts with Sarajevo and Banja Luka stock exchanges Contracts
with commercial banks Operative rules for trading in government
securities Legal Framework of the CBBH Engagement in Operations
with Government Securities 5
- Slide 6
- Hardware Hardware Software Software Network Infrastructure
Network Infrastructure Technical Pre-conditions for Operations with
Government Securities Hardware and software donation of the USA
Government, through agency US Treasury Hardware and software
donation of the USA Government, through agency US Treasury 6
- Slide 7
- Auction Participants in the Market of Government Securities in
Auctions (1) Ministry of Finance and Treasury of BiH Registries
Central Bank of BiH Banks 7
- Slide 8
- Participants in the Market of Government Securities in
Continuous Trading (2) Ministry of Finance and Treasury of BiH
Registries Central Bank of BiH Bank of BiH Banks Continuous Trading
Stock Exchanges 8
- Slide 9
- SASE Process of Trading in Securities (1) BLSE Bank B - buyer
Bank A - seller Trading platform CBBH payment system The Central
Bank of BiH BiH Ministry of Finance and Treasury Registry in F BiH
Registry in RS 1. Bank A sells bonds to bank B through the trading
platform of the CBBH or through the stock exchange. The trade
starts by entering data on offer for purchase and sale by the
seller and the buyer. In order to effect the trade, the entered
data on sale and offer have to match. 9
- Slide 10
- Process of Trading in Securities (2) Bank B - buyer Bank A -
seller Trading platform CBBH payment system The Central Bank of BiH
BiH Ministry of Finance and Treasury Registry in F BiH Registry in
RS 2. After the parties agree on trade, the transaction is locked
until the end of the day. The information on trade will be sent to
the registry and at the same time, the payment order will be
issued. The ownership of bonds in the registries will not be
changed until the payment is fully effected. SASE BLSE 10
- Slide 11
- Process of Trading in Securities (3) Bank B - buyer Bank A -
seller Trading platform CBBH payment system Central Bank of BiH BiH
Ministry of Finance and Treasury Registry in F BiH Registry in RS
3. After the registry (registries) receives the data on trade,
these data are entered in the system of the registry, without
changing the ownership status. The transaction then has the
unresolved status until it is confirmed that the payment has been
performed. SASE BLSE 11
- Slide 12
- Process of Trading in Securities (4) Bank B - buyer Bank A -
seller Trading platform CBBH payment system Central Bank of BiH BiH
Ministry of Finance and Treasury Registry in F BiH Registry in RS
4. After the registries receive confirmation on the effected
payments, they perform the final registration of ownership of
government securities for a new owner. SASE BLSE 12
- Slide 13
- The participant in trade is registered in one registry, NOT IN
BOTH OF THEM! Direct participants in trade (banks) have to have
accounts in the CBBH for payment and settlement. Other participants
in trade (trading through Sarajevo and Banja Luka Exchanges) have
to perform payment and settlement through direct participants
(banks). There can be no change of ownership before the payment is
completed. Important Rules of the Trading Process Itself 13
- Slide 14
- 14 Take-over of liabilities based on old foreign exchange
savings Take-over of liabilities based on war debt Impact on banks
interest rate policies Providing funds for budget users in periods
of unequal inflow of funds from taxes Mobilization of domestic
savings and investing in public projects of various levels of
authorities Which are the Most Important Objectives in Establishing
Market of Government Securities ?
- Slide 15
- Completing the preparation of legal and regulatory framework
for the market of government securities Market of government
securities as a new instrument of capital market for local and
foreign investors Market of government securities as a means of
mobilizing and engaging local savings for capital investments
Conclusions 15
- Slide 16
- Contact: The Central Bank of Bosnia and Herzegovina Ljubia
Vladui Vice Governor 25 Marala Tita St., 71000 Sarajevo, Bosnia and
Herzegovina 25 Marala Tita St., 71000 Sarajevo, Bosnia and
Herzegovina tel.: +387 33 278 116, 278 100 fax: +387 33 278 271
E-mail: E-mail: ljvladusic@cbbh.ba ljvladusic@cbbh.ba Thank You for
Your Attention! 16