Resident representative of the International Monetary Fund in BiH Francisco Parod confirmed that the Board of Directors of this international monetary institution will have a session in Washington on September 7, when the decision on approval of a credit arrangement for BiH should be reached.
This is in fact the extended credit arrangement of 1.075 billion BAM which will, allegedly, enable a momentum in investments, reforms and stabilization of budgets.
Parodi confirmed that first tranche of the credit can be expected several days after the session. First tranche for BIH will amount to around 150 million BAM – two thirds or 100 million BAM will go to the FBiH and RS will get 50 million BAM. According to estimations, first tranche should arrive to BiH by September 10.
Parodi said that the program will have three goals and BiH authorities have assumed concrete liabilities that have to be met during three-year-long program.
First goal is the improvement of business environment. In this regard, measures are directed at improving the functioning of the labor market, relaunching of the process of privatization and restructuring of enterprises owned by the state in FBiH, gradual reduction of burden on labor, and harmonization of regulations and tax laws between entities.
The second goal refers to the fiscal field, where authorities aim at reducing public debt through gradual fiscal consolidation, with simultaneous reduction of the size of government and improvement of the quality of government consumption.
Third goal is related to the financial sector, where the imperative is on maintenance of its stability and revival of the credit growth.
(Source: fokus.ba)
