After the session of the Fiscal Council of BiH, Chairman of the Council of Ministers of BiH Denis Zvizdić said that an agreement was reached on a “very favorable three-year credit arrangement with the IMF amounting to 550 million EUR”.
“Letter of Intent by the Fiscal Council was also harmonized with representatives of the IMF. The most favorable terms and arrangement were agreed,” said Zvizdić at the press conference.
Zvizdić said that terms are very favorable, that it is a loan with grace period of four and a half years and the final tranche should be paid after 13 years.
This was also confirmed by the International Monetary Fund in a press release after the visit to BiH that lasted from May 10 until May 24.
IMF Mission, led by Nadeem Ilahi, spoke with the authorities about economic program which could get their support, after which Ilahi said: “Personnel of the IMF and representatives of authorities in BiH reached an agreement, which is subject to approval by the Administration and the Executive Board, on economic program which can receive support in terms of a 36-month long Extended Arrangement amounting to 443.04 million SDR (around 550 million EUR, i.e. 262 percent of the quota). It is expected that the Board will consider the approval of this arrangement in July, after a series of measures is implemented during next several weeks. Economy shows significant signs of recovery. Expected growth this year is 3.0 percent. Inflation remained low, which is mostly the reflection of low inflation in the Euro zone, which is transferred to BiH thanks to the arrangement of the currency board. External and internal imbalances have gradually decreased in the past several years. Although the banking sector is liquid and adequately capitalized at the aggregate level, some sensitivity is still present”.
(Source: klix.ba/photo: avaz.ba)
