Bevanda – IMF: progress Achieved in Structural Reforms

Chairman of the Council of Ministers of BIH Vjekoslav Bevanda met in Sarajevo with a Delegation of the International Monetary Fund, led by Chief of Mission in BIH, Ron van Rooden, within the Fifth Review of the IMF Stand-by Arrangment. 

On this occasion, van Rooden informed Chairman Bevanda of the successful talks they had with the IMF Steering Board concerning the completed Fourth Review. He said that they were the result of right policies properly directed. He added that he informed the Board on a request of BIH authorities for an extension of the Arrangement, and that the response will depend on related economic policies and the budgets as their key element. He stressed that the Board session was scheduled for December 20, 2013, so that parliaments are expected to adopt the respective Budget by December 6, 213.

Chairman Bevanda said that the implementation of the programme is well underway towards the fulfilment of economic objectives and that all key quantitative aims and performance criteria in relation to budget balances of all-level Government of BIH for the current year were fulfilled, remaining within the limits defined in the Additional Letter of Intent.

Chief of IMF Mission van Rooden said that a progress was made over the past period in the implementation of structural reforms, by adoption of more than 12 new or amended laws. However, he noted that negotiations on IPA 2014-2020 could not be launched due to non-existence od an efficient coordination mechanism. He expressed his hope that interests of different political parties will moved away for the focus and that BIH will get the mechanism soon, which would unblock its moving towards the European Union and IPA funds. He underlined that the Indirect Taxation Administration was evidently more effective in prevention of attempts at illegal import and smuggling of goods in the first six months of this year, and that progress is also evident in the implementation of tax and customs procedures. In a Semi-Annual Activities Report on the ITA BIH, the index of realised net revenues was 100.34 per cent.

Speaking of the State Budget, Chairman Bevanda pointed out at the importance of adoption of the Framework Budget Document and Global Fiscal Framework, which facilitated the Budget drafting process, and expressed his hope that the first Draft Budget will be tabled to the Council of Ministers of IH in coming days.

(end)