IMF postpones fifth review under EUR 390mn loan deal with Bosnia after finance minister dismissal – IMF official

By bne IntelliNews January 13, 2014

The IMF postponed the approval of the fifth review under Bosnia’s EUR 390mn stand-by loan deal and the country’s request for extension and enlargement of the agreement due to the current political deadlock in the Federation, the fund’s resident representative in Sarajevo, Ruben Atoyan, was quoted as saying by Dnevni Avaz daily. The statement comes after the dismissal of the Federation’s finance minister, Ante Krajina, earlier this month threatened to hinder internal and external debt payments as well as other budgetary payments in Bosnia’s bigger entity as the latter cannot be made without his signature.

Atoyan noted that finance ministers at all levels (state and entities) have signed a letter of intent specifying their commitments under Bosnia’s stand-by deal with the IMF. A fully operational finance ministry is crucial for the implementation of the agreed policy agenda, he added. Furthermore, the Federation’s finance minister has an important role in several key institutions such as Bosnia's Fiscal Council and the Indirect Tax Authority, which also have an active role in the implementation of the IMF-supported program. Atoyan underscored the Fund will closely monitor the situation in the Federation and expressed hope that a quick solution will be found soon.

The IMF already postponed once its Executive Board meeting for January 22, 2014 after Bosnia’s state-level parliament failed to approve the 2014 budget by the IMF’s December 9 deadline due to a disagreement in the country's tripartite presidency. The IMF executive board was originally expected to approve the sixth tranche worth EUR 38mn under the 24-month loan deal on December 20, 2013. So far Bosnia’s track record under the current agreement with the fund has been good and the country has received EUR 237mn, or more than half of the funds provided under the stand-by deal.

The fund’s assistance will ensure most of the funding of Bosnia’s two entities and state institutions’ financial obligations this year which are expected to increase significantly due to rising debt servicing expenses.

Related Articles

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

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 ... more

Croatian government appoints new emergency officer at Agrokor

The Croatian government decided at a session on April 10 to appoint Ante Ramljak, an investment-banking expert, as struggling Agrokor’s emergency officer for the next 15 months of restructuring, ... more

Upper chamber of Bosnia’s parliament urgently adopts reforms to unlock IMF funds

The upper chamber of Bosnia & Herzegovina’s parliament - the House of People - adopted a set of reforms required by the International Monetary Fund (IMF) in ... 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