IMF postpones Bosnia loan tranche over lack of reform

By bne IntelliNews January 25, 2015

bne IntelliNews -

 

The International Monetary Fund (IMF) will delay the disbursement of a new loan tranche under its stand-by agreement with Bosnia because of lack of reform, according to a statement by Ruben Atoyan, the IMF resident representative in Bosnia, quoted by Indikator.ba news service. Atoyan also said that the IMF is planning a new mission to the country.

In September, the IMF had said that Bosnia needed more time to implement the policies agreed under its stand-by loan deal in order to receive approval for the next loan tranche. The Fund's mission pointed out that the policies Bosnia still needed to work on included measures aimed at reining in government spending that is not directly related to the floods; improving tax compliance and fighting tax fraud; strengthening financial sector stability and enhancing banking supervision.

In December, the IMF concluded its mission to Bosnia as part of the eighth review of the country's augmented €632mn stand-by loan deal, saying that the country’s economic outlook remains uncertain because of limited donor support. 

Bosnia and the IMF signed a 24-month €390mn stand-by agreement in September 2012 but extended it by nine months and augmented it by €153.1mn in January 2014 to meet additional financing needs. In June 2014 the IMF lifted the deal again by a further €95.7mn to help the country cope with the damage wreaked by the mid-May floods. After the two augmentations, the size of the deal reached €631.6mn, or 330% of Bosnia's IMF quota.

Also in June, the fund disbursed a €191.4mn installment to Bosnia, including the €95.7mn augmentation. The last tranche brought the total disbursements under the arrangement to €478.5mn.

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