Head of the IMF Mission in BiH, Nadeem Ilahi, stated in Sarajevo that, after 2 weeks of negotiations, an agreement with representatives of BiH government was reached, and that it still must be approved by the IMF board.
He emphasized that it is extended arrangement for a period of 36 months in a total amount of 550 million EUR, and it includes the implementation of extensive and significant measures.
Ilahi noted that structural reforms whose implementations were agreed with BiH authorities in the next 3 years will include improvement of the business environment, which means the improvement of the labor market, a new round of privatization and restructuring of state-owned companies, as well as reducing the tax burden on labor.
Ilahi said that the last element of reforms includes improvement of stability of the financial sector with a focus on preserving the currency board and the independence of the Central Bank.
Ilahi stated that the economic assessment that was carried out by the IMF Mission showed that there is a certain economic recovery in BiH, and that they expect the rate of GDP growth this year to be around 3 %, while inflation is quite low.
He emphasized that he expects the World Bank and the EU to start their programs with BiH authorities after this agreement, so that complete package of support of international partners should be realized in the future.
Prime Minister of FBiH, Fadil Novalic, said that the privatization, restructuring and better management of state-owned enterprises will follow in the FBiH.
(Source: klix.ba)
