Economists warn that the new Debt poses a Danger to all Citizens of BiH

The Council of Ministers of Bosnia and Herzegovina has requested 1.5 billion marks from the International Monetary Fund.

The negotiations have just begun and there are no harmonized positions of the IMF and BiH yet. Economists warn that the new debt poses a danger to all citizens of Bosnia and Herzegovina.

The Council of Ministers justifies this decision with a coronavirus pandemic. The conditions for obtaining the money have not been determined yet, it was confirmed for BHRT in the IMF.

Andrew Jewell, IMF Resident Representative in Bosnia and Herzegovina stated: “The authorities have requested an EFF (Fund for Extended Arrangements) worth 750 million euros. The conditions attached to obtaining the money have not yet been finalized. ”

The Directorate for Economic Planning of Bosnia and Herzegovina claims that BiH has a sustainable debt as long as it is below 60 percent of GDP. Experts oppose it. Drasko Acimovic, an economic expert “Developing countries, such as Bosnia and Herzegovina, can borrow up to a maximum of 35-40 percent of their GDP. We are currently on that scale and we are already in over-indebtedness because we do not have an economy. ” With 1.5 billion, Bosnia and Herzegovina would reach almost 50 percent of its GDP.

Acimovic adds: “This is a matter of life and death for the citizens of Bosnia and Herzegovina. They should not be allowed to do that. Let them reduce their expenses, let them reduce their salaries, let them stop crime and corruption. And there will be enough money within BiH to implement the reforms and with the completed reforms to borrow. ”

Although BH politicians are trying to find new funds to help, they do not plan to reduce their salaries, which are three to five times higher than average. They do not plan to sell off fleets, including several helicopters.