bosnia-herzegovina is still recovering from the balkan conflict which ended 17 years ago. with unemployment at around 43% this is a difficult environment to get people to invest in saving energy. most are simply too busy making ends meet. but the country has a lot of potential. better insulation of buildings and more modern technology could bring large energy savings. to get things moving, the international climate initiative has been offering cheap loans to those willing to invest. >> they still look like cartridges -- these screws have to be hardened before they get their threading. the furnace heats the screws to 900 degrees celsius. then the glowing steel is cooled in an oil bath. senad macic is in charge of the entire process. he regularly checks the temperature beneath the giant oven. >> it's ok. it's not too hot. >> the oil is being cooled with water to prevent overheating. >> we used to take it from the tap, and when it got too warm we let it down the drain. but today we use it for our floor heating. >> the blue and green pipe conducts the heated water toward the s

portugal, poland, slovakia and boz that herzegovina say they're pulling out of the competition becauserd to win. the czech republic and greece are also reported to want out. >> it costs to perform, and it costs to stage it. and what do you get back? bluntly a bunch of hoopla and a few pom-poms. it can be uplifting when the times are good. greece won it in 2005, but is it appropriate for the greeks to pump millions or billions in? i think austerity is one reason. but i think also the tone is another. is it right to be celebrating in spandex when your people are out on the streets? >> reporter: looking at some of the countries' economic scorecards, it's hardly surprising. greece is aware that taking part could be an issue. especially as its economy is expected to drop to minus 4.5% next year. portugal, meanwhile, is expected to shrink 1.8%. and poland and slovakia have decided to spend their money on other projects. that's despite projecting positive growth for 2013. ♪ it reportedly costs around $160,000 to take part. and if you win, some countries spend big to host the lavish event. for