Decision on Amendments and Supplements to the Decision on the Purchase and Sale of Convertible Marks by Commercial Banks

Pursuant to Article 7, paragraph (1), point b), Article 33, and Article 70 of the Law on the Central Bank of Bosnia and Herzegovina ('Official Gazette of BiH', nos. 1/97, 29/02, 13/03, 9/05, 76/06, and 32/07), the Governing Board of the Central Bank of Bosnia and Herzegovina, at its fifth session held on March 29, 2021, adopts

DECISION on Amendments and Supplements to the Decision on the Purchase and Sale of Convertible Marks by Commercial Banks

Article 1. In the Decision on the Purchase and Sale of Convertible Marks by Commercial Banks ('Official Gazette of BiH', No. 64/18), paragraph (4) is added after paragraph (3) of Article 2, which reads:

'(4) A working day for the purposes of this Decision is a day on which the Central Bank and the TARGET system operate. Non-working days for the Central Bank are Saturday, Sunday, January 1 and 2, May 1 and 2, and other days determined by the Governor of the Central Bank for justified reasons in accordance with regulations. Non-working days for TARGET are defined by Eurosystem regulations.'

Article 2. In Article 4, paragraph (5), the words 'or with the value date' are followed by the words 'same working day (T+0) or'.

Paragraph (6) is amended and reads: '(6) Depending on the current availability of foreign exchange reserves, the investment plan, and previously undertaken obligations, the Central Bank may approve the request referred to in paragraph (5) of this Article.'

Paragraph (7) is amended and reads: '(7) The Bank must submit the request referred to in paragraph (5) of this Article to the Central Bank no later than 11:00 a.m. for a request with a same working day value date (T+0), or no later than 1:00 p.m. for a request with a next working day value date (T+1).'

Paragraph (8) is added after paragraph (7), which reads: '(8) If a request with a same working day value date (T+0) is submitted after 11:00 a.m., or a request with a next working day value date (T+1) is submitted after 1:00 p.m., it shall be rejected.'

The existing paragraphs (8), (9), (10), and (11) become paragraphs (9), (10), (11), and (12), respectively.

Article 3. In Article 5, paragraph (6) is amended and reads:

'(6) The Central Bank executes the settlement of the sale of KM on the date on which the bank's payment to the foreign exchange account is confirmed, or on the date of taking possession of effective foreign cash. If the payment is not executed for unforeseen reasons by 4:30 p.m., the execution of the settlement shall be postponed to the next working day, provided that the funds are recorded in the statement of the Central Bank's account with a foreign bank or approved on DB-CI or DB-DI no later than 1:00 p.m. on the next working day, of which the bank shall be notified in due time.'

Paragraph (7) is added after paragraph (6), which reads: '(7) If the payment is not executed in accordance with paragraph (6) of this Article, it shall be considered that the bank has withdrawn from the agreed settlement of the sale of KM, of which the bank shall be notified in writing. If it is necessary for the Central Bank to return foreign exchange funds to the bank, such return shall be executed to the bank's account within a reasonable period in accordance with the bank's instruction.'

The existing paragraph (7) becomes paragraph (8).

Article 4. Article 6 is amended and reads:

'Article 6. (Fee) The Central Bank calculates and collects fees in accordance with the regulation on the tariff of fees of the Central Bank.'

Article 5. This Decision enters into force on the eighth day from the date of publication in the 'Official Gazette of BiH', and shall be applied from May 1, 2021.

Article 6. This Decision shall also be published in the 'Official Gazette of the Federation of Bosnia and Herzegovina', the 'Official Gazette of the Republika Srpska', and the 'Official Gazette of the Brčko District of Bosnia and Herzegovina'.

Chairman No.: UV-122-01-1-892-9/21 Governing Board of the Central Bank Sarajevo, March 29, 2021 of Bosnia and Herzegovina GOVERNOR dr. Senad Softić