Zvizdić and Bevada with IMF Mission on Continuation of Arrangement

Chairman of the Council of Ministers of BIH Dr Denis Zvizdić and his Deputy, Minister of Finance and Treasury of BIH Vjekoslav Bevanda talked with Head of the IMF Mission Nadeem Ilahi on continuation of the credit arrangement and implementation of started reforms. 

The meeting concluded that not all commitments, taken under the Letter of Intent, have been met, but that there is still enough time to continue KM 1.1 billion worth arrangement, under which the first tranche worth KM 150 million has been already disbursed to both Entities.

Chairman Zvizdič said all commitments which were the exclusive competence of the Council of Ministers of BIH were fulfilled, and that there is a possibility to finalise, within defined deadlines, the remaining legal amendments, set forth in the Letter of Intent.

Minister Bevanda said that this year’s Budget was adopted on time, including the Salary Policy for four year period of time, and that by-laws were prepared for limiting additional employment in the BIH Institutions, with continued austerity measures, which practically means the fulfilment of the agreement signed in the Letter of Intent.

Head of the IMF Mission Ilhahi stressed that due to delays in implementation of reforms, based on the Letter of Intent, the IMF Board cannot discuss the continuation of the arrangement and second tranche before the end of April this year, and that the time should be used for the fulfilment of the remaining obligations.

Chairman Zvizdič and Minister Bevanda emphasised that the reform implementation in several areas is beyond question because the new arrangement with the IMF, as well,  is based on all-comprehensive reforms to yield results in the coming period of time, provided that all stakeholders are interested to be a part of this reform process.

It was stressed that the best solution should be south for so that the Law on Excises of BIH would be amended as early as possible, including legal amendments as regards the BIH Deposit Insurance Agency, as part of reform package in the banking sector, to be implemented by Entities, as well.

The IF Mission stays in BIH until March 16, and will hold talksd with the Entiy Governments and representatives of competent institutions.

Today’s meeting was attended bb Francisco Parodi, IMF Resident Representative in BIH.

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