GARANCIJE I RAZVOJ: GARANTNI FOND FEDERACIJE BOSNE I HERCEGOVINE
GUARANTEES AND DEVELOPMENT: THE GUARANTEE FUND OF THE FEDERATION OF BOSNIA AND HERZEGOVINA

Summary/Abstract: The topic of this paper is the investigation of the correlation between the financial resources approved through the Guarantee Fund and the level of development in the Federation of Bosnia and Herzegovina (FBiH). The Guarantee Fund was established with the aim of mitigating the negative effects of the Covid-19 pandemic on the economy in FBiH, as well as creating conditions for sustainable economic growth and employment. The economy in FBiH was affected by the negative consequences of the Covid-19 pandemic from its outbreak in 2020 until the end of the pandemic, in mid-2023. Negative effects were observed in the decline of economic activity, which also impacted the labor market situation in FBiH. The subject of this paper is the credit-guarantee programs approved by the Guarantee Fund of FBiH, economic growth, and the labor market situation in FBiH. The Guarantee Fund of FBiH is managed by the Government of FBiH and represents a monetary fund within the Development Bank of FBiH. Funds from the Fund are used to meet obligations arising from protested guarantees. The data on which the research is conducted relates to the year 2022. By applying descriptive statistics methods, the direction and strength of the correlation and relationships between the variables were examined and appraised. The results obtained identify a positive relationship and confirm the existence of a linear relationship between the number of business entities and the number of employees on one hand, and the number and amount of approved guarantees on the other. Additionally, the existence of a linear relationship was not confirmed between development levels and export at the canton level, and the approved guarantees and participation in export programs within the Guarantee Fund of FBiH. The research results point to the effects of the measures implemented through credit-guarantee programs on growth and development indicators in FBiH in the short term.

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