Bosnian parliament again fails to adopt reforms to save deal with IMF

Bosnian parliament again fails to adopt reforms to save deal with IMF
By bne IntelliNews April 20, 2017

The lower chamber of Bosnia & Herzegovina’s parliament, the House of Representatives, again failed to adopt key legislative changes needed for the country to get a second funding tranche from the International Monetary Fund (IMF) under an agreement signed in 2016.

Earlier in April, the parliament’s upper chamber adopted the changes, but they need approval from both chambers for them to become law. The IMF said that completion of the first review of its agreement with Bosnia would be delayed significantly after the lower chamber failed to adopt the legislative amendments at another session in March.

Although MPs declined to adopt the amendments at the April 20 session, they agreed to discuss and vote for them under a shortened procedure, Klix.ba reported.

In January, the IMF put the arrangement on hold for the same reasons and extended the deadline to mid April. It is unclear now when the lower parliament will debate the set of reforms or whether the IMF offer will still be available.

The funding tranche was agreed in principle in September 2016, when Bosnia and the IMF agreed on a new 36-month deal, supported by a SDR443.04mn (about €550mn) Extended Fund Facility (EFF). The country had been trying for almost a year to secure a new IMF deal after the previous arrangement expired in June 2015. The new deal was expected to help the governments of Bosnia’s two entities – the Muslim-Croat Federation and Republika Srpska – patch their budget gaps and give them some stability over the next three years.

Before that, the country lost the last two tranches from its previous deal with the fund, again because it failed to carry out the necessary reforms in time.

Related Articles

Bosnia misses out on second tranche of IMF funding and must renegotiate a deal

Bosnia & Herzegovina reportedly has lost its chances to receive a new tranche from the International Monetary Fund (IMF) ... more

Planned coal-fired plants in Balkans fail to meet new EU pollution standards, CEE Bankwatch warns

A new analysis by environmental group CEE Bankwatch Network has concluded that the planned coal-fired power plants in the Western Balkans do not meet ... more

RBI doubles net profit y/y in Q1 as Russian business recovers

Raiffeisen Bank International (RBI), the second largest bank operating across Central and Eastern Europe by assets, reported that net profit almost doubled year-on-year to €220mn in the first ... more

Dismiss