This report covers the main macroeconomic releases from March 6 until April 5, 2016 as well as the financial and political events that took place in Bosnia during this period. A UN war crimes tribunal has sentenced former Bosnian Serb leader Radovan Karadzic to 40 years in jail after finding him guilty of ten of the 11 charges against him. The sentence issued on March 24 includes the time Karadzic has already spent in custody since 2008. The EU enlargement commissioner Johannes Hahn has urged Bosnia & Herzegovina to adopt by early May a working coordination mechanism and adjust its Stabilisation and Association agreement with Croatia’s entry in the bloc in order to give its membership application credibility. The Foreign Affairs Committee of the European Parliament said on March 22 that Bosnia & Herzegovina should improve the effectiveness of its fight against terrorism and expressed concerns about high political pressure on judicial institutions. Ratings agency Standard & Poor's (S&P) affirmed on March 11 its credit ratings on Bosnia & Herzegovina at B/B as it expects that the country will continue to benefit from international financial support. The outlook is confirmed at stable. On the corporate side, the government of Bosnia & Herzegovina’s bigger entity, the Muslim-Croat Federation, has decided to launch the sale of its stake in blue chip pharmaceuticals producer Bosnalijek. Key points: • CPI deflation worsened to 1.3% y/y in February • The working-day adjusted industrial production declined by 3.3% y/y in January • The foreign trade gap narrowed 4.2% y/y to BAM793.5mn (€405.7mn) in the first two months of 2016