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

Upper chamber of Bosnia’s parliament urgently adopts reforms to unlock IMF funds
By bne IntelliNews April 8, 2017

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 order to disburse a BAM155mn (€79.3mn) second loan tranche to the country at an urgent session on April 7.

The previous day the IMF said that completion of the first review of its agreement with Bosnia would be delayed significantly after state-level lawmakers from the lower chamber failed to adopt the legislative amendments.

To become legal, the reforms still need to be approved by the lower chamber – the House of Representatives. The two chambers have equal rights and no legislation can be passed without the approval of any both.

Before the parliament vote, the state-level government also held an extraordinary session on April 7, approving the same legislative amendments for the third time and asking the upper chamber to vote on them at an urgent session.

If the lower chamber fails to approve the changes before mid-April, Bosnia will not receive the second loan tranche earlier than September, local daily Nezavisne Novine reported.

In March, the IMF warned that the country risked losing its loan agreement if it failed to complete the set of reforms including changes to the excise tax regime. It gave Sarajevo until the middle of April to achieve this. In January, the fund put the arrangement on hold for the same reasons.

In September 2016, Bosnia and the IMF finally 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 do the needed reforms.

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