Resident Representative of the International Monetary Fund in BiH Francisco Parodi said that the first tranche of the arrangement for BiH is expected in July, after the Executive Board approves the program, and it will be used for financing the previously agreed budgets.
“The authorities will be requested to regularly report on the execution of their budgets. Personnel of the IMF will then assess whether the execution of budgets is in accordance with the set goals. Payment of other tranches will depend on the fulfilment of fiscal goals,” Parodi stated.
Parody said that the Board of the IMF will considers the approval of the arrangement for BiH amounting to about 550 million EUR in July, after a series of measures is implemented.
Parody explained that representatives of the IMF and representatives of BiH authorities reached an agreement, which is subject to approval by the Administration and the Executive Board, on the economic program which can receive support in terms of a 36-month arrangement amounting to around 550 million EUR.
According to Parodi, the program has three goals, the first of which refers to the improvement of business environment with the aim of attracting investments, opening more workplaces in private sector, and increasing potentials for economic growth.
“The second aim is the decreasing of public debt through first-degree consolidation, with simultaneous reduction in the size of the government and improving the quality of government consumption. Third goal is the maintenance of stability in the financial sector and the revival of credit growth,” Parodi explained.
Parody pointed out that the loan will provide budget support to entity budgets and the funds will be paid in 12 quarterly tranches over the period of three years, depending on the fulfilment of quantitative aims and concrete measures of policies which were jointly agreed upon within the program.
(Source: akta.ba/photo: balkans.aljazeera.net)
