What did the Authorities of BiH, FBiH and RS promise to the IMF in exchange for Extension of the Arrangement?

Center for connecting with the EU – EU Connect analysed the First Review of the International Monetary Fund (IMF) on the basis of the Extended Arrangement and the Request for Extension of the Arrangement with BiH.

Authorities in BiH promised to refrain from raising salaries in the public sector, among others by refraining from increasing the base and the coefficient of salaries, as well as benefits. It is a measure that has not been implemented yet, since the entities of the FBiH and the RS have fulfilled the structural definition, but the institutions of BiH have not.

EU Connect also warned on the disproportion of salaries in the public and real sector, whose result is the fact that majority of young people see the state as the ideal employer. They especially noted that this kind of approach to the labour market is not sustainable and it is not in compliance with the principles of market economy.

Considering the fact that statistical agencies do not have accurate data on the average salary of employees in the real sector, the share of salaries in public sector determines the average salary in BiH, which is much lower than 862 BAM in the private sector.

The Government of the FBiH promised to complete detailed analysis of state-owned companies BH Telecom and HT Mostar in the year of 2018, with the aim of improvement of their corporate governance, their restructuring and / or sale of shares.

The National Assembly of the RS will have to adopt amendments to the Law on the Investment – Development Bank of the RS in compliance with the recommendations of the IMF by the end of June, 2018. Moreover, the Parliament of the FBiH will have to adopt amendments to the Law on the Development Bank of the FBiH in accordance with recommendations of the IMF also by the end of June.

It is necessary to extend the system of treasury operations to the budget management systems in cantons of the FBiH by the end of March 2019, while the Government of the RS will have to extend the system of treasury business operations to healthcare centers.

Thus, all levels of government, i.e. the institutions of BiH and the entities of the FBiH and RS, have to adopt operational plans for the decrease of the total number of employees in the public sector on the basis of a register of employees that will be created with the help of the World Bank by the end of December 2018.

(Source: klix.ba)


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