The House of Representatives and House of Peoples of the FBiH today will have an emergency session for a decision on accepting the responsibilities of the FBiH to the extended arrangement (EFF) with the International Monetary Fund (IMF).
This decision is necessary to be adopted by both houses because it is necessary to pay default interest on the money that has been approved.
The federal government proposed a debt in the amount of 720,224,000 BAM, which represents two-thirds of the total approved funds for BiH (1,080,336,000 BAM).
The loan will be used to help in the implementation of economic policies that have three main objectives: the intensification of reforms to improve the business environment, attracting investments in order to create more jobs in the private sector, and increase the potential for economic growth.
The second aim is to continue the process of fiscal consolidation to ensure a continuous reduction of public debt in relation to GDP, while reducing the size of government and improving the quality of government spending. Maintaining the stability of the financial sector and the revival of credit activity of banks is the third goal of the implementation of economic policies.
With credit loans from the European Bank for Reconstruction and Development (EBRD) in the amount of 80 million EUR, it is proposed to provide funds for the Project Corridor 5C on subsection Buna – Pocitelj and subsection Donja Gracanica – Tunnel Peculj (Zenica North) and Tunnel Pecuj – Klopce. The ultimate borrower in this credit obligation is the PE “Highways of the FBiH” Ltd Mostar.
(Source: Radiosarajevo.ba)
