The International Monetary Fund said it will make available €74.6 million to Bosnia, after completing the first review of the country’s economic performance under the Extended Fund Facility.
The IMF executive board approved the 36-month, 553.3 million euro arrangement under the EFF for Bosnia and Herzegovina on September 7, 2016. Following the review’s approval by the fund’s executive board, the total funds made available to Bosnia under the EFF total 149.3 million euro, the IMF said in a statement.
“Bosnia and Herzegovina has continued to make progress in lowering internal and external imbalances in recent years. The authorities have also implemented economic policies and structural reforms under the Fund-supported program, including maintaining fiscal discipline, safeguarding financial stability, and improving the business environment,” said Tao Zhang, deputy managing director and acting chair.
“The recent increase in excise rates on fuel products is expected to unlock external financing for significant growth-enhancing infrastructure investment. Going forward, the authorities need to continue their efforts to improve the business environment, by reforming the labor market and reducing para-fiscal fees,” Zhang said.
Zhang also commended progress made in modernizing the legal and regulatory environment of the financial sector by adopting new banking laws and amending the banking agency laws.
“Prompt passage of the new deposit insurance law will be important. Sustained efforts are needed to improve coordination, cooperation, and information exchange among various financial sector authorities to safeguard financial sector stability”, he added.