The International Monetary Fund (IMF) has conditioned the disbursement of 40 million euros for the continuation of the stand-by arrangement on additional savings in Bosnia and Herzegovina, the IMF announced on Friday.
After reviewing fulfilled obligations and discussions with the authorities in BiH, the head of the IMF delegation, Costas Christou, emphasized that progress in reforms is expected in the areas of reducing budget expenditures in the Federation of BiH and continuing the review of war veterans’ benefits. "Assuming the acceptance of these measures, the executive board will consider the continuation of the stand-by arrangement by the end of September. A successful completion will enable BiH to utilize around 40 million euros to support entity budgets," Christou stated.
He added that the stand-by arrangement with the IMF has helped stabilize the economy in BiH, particularly macroeconomic indicators. The IMF also notes that exports from Bosnia and Herzegovina have increased in the first half of the year. "It is now crucial to maintain the implementation of reforms until the general elections and after them. The global recovery is expected to support the expansion of exports from BiH, which would lead to a gradual continuation of economic growth," added the head of the IMF mission for BiH, Costas Christou. He noted that this will still not be sufficient to eliminate the financial deficit, for which structural cuts and reduced public spending are necessary. The IMF welcomed the intentions of the authorities in BiH to increase financial discipline and reduce the overall deficit. (H)
