The entity governments of Republika Srpska and the Federation will have a session together in Banja Luka today to discuss the Reform Agenda benchmarks, critical for a loan deal with the International Monetary Fund. The governments will also discuss reports on informal economy and roads, and a methodology for future joint sessions, said the RS government.
Federation Prime Minister Fadil Novalić said that the session will give a boost to the reforms.
“One of the most important (reforms) is the establishment of a permanent and effective mechanism to combat informal economy in the whole of Bosnia and Herzegovina. This effort would not be possible if carried out only by one of the entities, therefore we are going to talk about it specifically,” said Novalić.
Bosnia must deliver on its reform pledges by the end of April to continue receiving funding under its current three-year loan deal with the International Monetary Fund, the state-level government said this week.
The release of the second loan tranche has been delayed because Bosnia has failed to meet the reform commitments described in the letter of intent submitted to the IMF last year, but the country still has time to save the deal, the government said in a statement following a meeting on Tuesday between members of the cabinet and IMF mission officials.
The IMF has given Bosnia until the end of April to meet its obligations before it launches concrete discussions on the continuation of the arrangement and the release of the second tranche.
In September last year, the IMF approved a three-year 553.3 million euro loan to Bosnia and Herzegovina to support the country’s economic reform agenda. The disbursement of funds hinges on the implementation of a set of reforms which should better the country’s economy.
An IMF mission is on a visit to Bosnia until March 16, to hold meetings with the entity governments and representatives of relevant institutions.