Francisco Parodi, the resident representative of IMF in BiH, explained that the authorities of BiH have a period of a few weeks to fulfill previous measures, in order for the IMF to give its recommendation with respect to the conclusion of the first review. Otherwise, they will need to negotiate again about the terms. It is the amount of about 150 million BAM.
Parodi said that the authorities and the staff of the IMF reached an agreement on the issue of several previous measures that are necessary for the conclusion of the first review under the EFF.
“These measures will not only result in the release of the second tranche but, most importantly, will be beneficial for BiH and will also help increase growth and create new workplaces.
“The time frame for the implementation of the remaining prior measures depends on the authorities. If the previous steps that represent a precondition for our board to take into consideration the first review are not completed in the next few weeks, then we will negotiate again about the first review and the terms, and the timetable for allocation of funds will be changed. Future allocations will depend on reaching an agreement with the authorities of BiH and progress in the field of reforms.
Three prior measures were related to the adoption of the budget for 2017 of BH institutions and entities.
“These budgets are fully financed, they increase the effectiveness of government, and redirect resources from current spending to the much-needed public investment in infrastructure. These budgets also have strict limits on the total expenditure for salaries, because, in the medium term, spending on salaries should be reduced in order to release more resources for investment. Moreover, BiH institutions have also committed themselves to adopt a decision on the Council of Minister of BiH on imposing further control on hiring, which is a special measure that has not been completed yet,” says Parodi.
Authorities have committed to increasing the excise tax on petroleum products including liquefied petroleum gas and biofuels to 15 pfennings per liter.
Moreover, authorities of FBiH committed themselves to sign contracts with international consultants to conduct operational and financial due diligence for BH Telecom and HT Mostar with the aim of restructuring and/or sale of shares.
Parodi said that the implementation of these measures is very important because it will bring long-term benefits to BiH. They will strengthen the economy and create the conditions for opening of new workplaces.
(Source: nap.ba)
