Bosnia-Herzegovina secures new IMF stand-by loan

By bne IntelliNews September 27, 2012

bne -

The International Monetary Fund announced on September 26 that it has granted Bosnia-Herzegovina a new €405.3m stand-by loan in support of the government's programme to fight the economic slowdown.

The agreement is a rare victory for the government of a country still split into two semi-independent entities following the 1990s Balkan wars: the Muslim-Croat Federation and the Serbs' Republika Srpska. Negotiations on a new loan (a previous €1.2bn programme was frozen in 2010 because authorities had failed to carry out key fiscal and institutional reforms) resumed in June after a 16-month political crisis that was resolved when a new central government was formed in February.

The IMF executive board announced in a statement that it has approved the two-year loan, and released an initial installment of €60.8m. The remainding funds will be disbursed depending on successful quarterly reviews. "The program aims at countering the effects of the worsening external environment and addressing domestic structural weaknesses," it said.

Nemat Shafik, IMF deputy managing director, said that Bosnia-Herzegovina's "prudent" financial sector policies have helped the country weather the global financial crisis, but called for improved fiscal policy coordination. "In recent months, Bosnia and Herzegovina's economic recovery has been losing momentum and risks to the outlook have tilted to the downside. In this context, the authorities' comprehensive economic program for the period ahead is timely and welcome," Shafik said in the statement.

In July, the government announced that, as a condition for obtaining the loan, Bosnia's two semi-independent entities had pledged to revise budgets and implement structural reforms.

Related Articles

Macedonia kept on hold as Balkans edges towards EU goal

Clare Nuttall in Bucharest -   Macedonia’s EU accession progress remains stalled amid the country’s worst political crisis in 14 years, while most countries in the Southeast Europe region have ... more

Austria's Erste rides CEE recovery to swing to profit in Jan-Sep

bne IntelliNews - Erste Group Bank saw the continuing economic recovery across Central and Eastern Europe push its January-September financial results back into net profit of €764.2mn, the ... more

INVISIBLE HAND: Rhetorical wizard Draghi conjures up a QE battle

Liam Halligan in London -   Mario Draghi is being hailed, once again, as a rhetorical wizard. The president of the European Central Bank has done it again. After the October meeting of the ECB’s ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss