## State-Owned Enterprises in Bosnia and Herzegovina: Assessing Performance and Oversight

_IMF Working Papers, September 20, 2019_

## Source details

**Canonical URL:** [State-Owned Enterprises in Bosnia and Herzegovina: Assessing Performance and Oversight](https://www.imf.org/en/publications/wp/issues/2019/09/20/state-owned-enterprises-in-bosnia-and-herzegovina-assessing-performance-and-oversight-48621)

## Other formats

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## Bibliographic details
- Authors: Bobana Cegar, Francisco J Parodi
- Published: September 20, 2019
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781513512181.001

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### Summary findings
- Based on a new database of State-Owned Enterprise (SOE) financial statements, SOEs in Bosnia and Herzegovina are mostly in poor financial shape.
- Financial analysis suggests that SOEs are not contributing enough to the economy.
- Governments do not exercise their ownership function in line with WB/OECD guidelines.
- Reforms to the governance frameworks are necessary to foster transparency and improve accountability.
- More fundamental reform of the SOE sector might increase overall GDP by 3 percent per year.

### Size, composition, and fiscal/macro relevance
- The paper estimates the overall size and composition of the SOE sector and identifies individual companies that affect fiscal and macroeconomic performance.

### Financial performance and risks
- Analysis is based on a new database of SOE financial statements.
- The SOE sector is characterized as mostly in poor financial shape.
- The study assesses SOE contribution to the economy and identifies financial shortcomings that imply limited contribution.

### Governance assessment
- The SOE governance framework is reviewed against WB/OECD guidelines.
- Finding: governments do not exercise their ownership function in line with WB/OECD guidelines.
- Recommendation: reforms to governance frameworks to foster transparency and improve accountability.

### Policy implications and recommendations
- Strengthen ownership frameworks and exercise ownership functions consistent with WB/OECD guidance to improve oversight and performance.
- Implement governance reforms to increase transparency and accountability of SOEs.
- Consider more fundamental sectoral reform given potential macroeconomic gains (noted potential increase in overall GDP by 3 percent per year).

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## Content in this bundle

- **Working Paper**
  - [Working Paper (Markdown version)](/-/media/files/publications/wp/2019/wpiea2019201-print-pdf.pdf.md){rel="alternate" type="text/markdown"}
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_Source: https://www.imf.org/en/publications/wp/issues/2019/09/20/state-owned-enterprises-in-bosnia-and-herzegovina-assessing-performance-and-oversight-48621_