IMF mission to visit Bosnia on Sept 10 for eight review of EUR 632mn stand-by deal

By bne IntelliNews September 5, 2014

An IMF mission will arrive in Bosnia on Sept 10 for the eight review of the country's augmented EUR 632mn stand-by loan deal, the IMF's resident representative in Sarajevo, Ruben Atoyan, said as quoted by daily Dnevni Avaz.

The mission, led by Ron van Rooden, will stay in Bosnia until Sept 19, Atoyan told reporters in Sarajevo on Sept 5.

Bosnia and the IMF signed a 24-month EUR 390mn stand-by agreement in September 2012 but the deal was extended by nine months and augmented by EUR 153.1mn in January 2014 to meet additional financing needs expected to arise mainly in late 2014.

Yet, in June 2014 the IMF augmented the deal again by further EUR 95.7mn to help the country cope with the damages of the mid-May floods. After the two augmentations the size of the deal reaches EUR 631.6mn, or 330% of Bosnia's IMF quota.

Also in June, the Fund's executive board approved the completion of the sixth and seventh reviews of Bosnia's economic performance under the stand-by programme, disbursing an instalment of EUR 191.4mn, which included the EUR 95.7mn augmentation. The last tranche brought the total disbursements under the arrangement to EUR 478.5mn.

The IMF board also approved back in June Bosnia’s request for modification of the end-June 2014, end-September 2014, and end-December 2014 performance criteria on the fiscal balances (net lending) of the governments of the two entities - the Federation and the Serb Republic, to reflect the impact of the floods on the government finances.

Since then the governments of the two entities and the state-level government revised their budgets for 2014 to adjust them to the new circumstances.

Later on in July, the IMF downgraded dramatically its forecast for Bosnia's 2014 economic growth to 0.7% from 2.0% as a result of the floods and the damage they caused to the economy, seen by the Fund at 5-10% of GDP.

Related Articles

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

Opposition in Bosnia’s Republika Srpska seeks no-confidence vote against government

Three opposition parties in Bosnia & Herzegovina’s Republika Srpska filed a request for a no-confidence motion against the government on May 15, ... more

Bosnia’s fourth attempt to meet requirements for IMF loan tranche fails

Bosnia & Herzegovina's parliament failed for the fourth time to adopt key legislative changes required by the International Monetary Fund (IMF) to disburse the second tranche under an ... 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