IMF mission starts visit to Bosnia to initiate possible new stand-by loan deal.

By bne IntelliNews May 16, 2012
An IMF mission will start a several-day visit to Bosnia on May 16 in order to initiate talks on a potential new stand-by funding deal with the local authorities, as well as to execute its regular consultation on the state of the countrys economy, news service Capital.ba reported. It quoted the IMFs resident representative to Bosnia, Milan Cuc, as saying that the mission, headed by Costas Christou, will stay in Bosnia until May 29. Bosnia's state-level fiscal council decided in March to start talks with the IMF on a new stand-by loan agreement after the country failed to meet the conditions to unfreeze its earlier EUR 1.1bn stand-by deal with the IMF signed in July 2009. The Balkan state managed to withdraw only a third of the funds. Earlier this month, Cuc and Christou said in a joint statement that Bosnia is not likely to benefit from a significant gross domestic product growth before 2013 and therefore needs to urgently launch key reforms in order to survive the crisis and restart its own economic recovery. They warned that Bosnias unfavourable business climate continues to discourage new investment. The unemployment is high, while the share of active population in the overall labour force is among the lowest in the region. Bosnia needs to improve its business climate, to open the energy sector for foreign investment, to develop its labour market, strengthen the private sector and cut public spending, the IMF experts said.
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