B-H – EU: EUR 100 Million Support to B-H Macroeconomic Stability



Deputy Chairman of the Council of Ministers and Minister of Finance and Treasury Dragan Vrankić and EU Commissioner for Enlargement and European Neighbourhood Policy Stefan Füle signed a Memorandum of Understanding on Macroeconomic Assistance for B-H for an amount of EUR 100 million, in Sarajevo today.

This Loan is intended to support the programme of necessary fiscal adjustments and structural reforms which B-H is due to implement to secure sustainable foreign and fiscal account.

The Macrofinancial Assistance (MFP) is an extraordinary instrument of a response to crisis situations, available to EU neighbouring countries. It is conditioned upon and it complements the adjustment programme already agreed between Bosnia and Herzegovina and the International Monetary Fund.

The EU is convinced that the MFP is efficient to help B-H face more effectively the current economic challenges, such as necessary fiscal consolidation and social benefits system reform.

This sizeable financial support provided by the EU will be disbursed in two tranches, EUR 50 million worth each. The main requirement for the disbursement of the first tranche is the adoption of the Fiscal Balance and Policy Global Framework by the B-H Fiscal Council. The European Commission encourages the B-H authorities to fulfil this requirement in the shortest time possible. (end)