IMF to approve EUR 550mn loan for Bosnia

The International Monetary Fund (IMF) is set to approve a new, EUR 550 million loan to Bosnia and Herzegovina in early September, the Sarajevo daily Dnevni Avaz said on Monday, quoting IMF Resident Representative Francisco Parodi.

A formal decision is expected to be made at an IMF Executive Board meeting in Washington on September 7. The loan will be used by the country's two entities, with two-thirds of it going to the Bosniak-Croat entity, known as the Federation, and the remaining third going to the Serb entity, called Republika Srpska.

Instead of previous stand-by arrangements, Bosnia and Herzegovina and the IMF will conclude a long-term arrangement under the Extended Fund Facility, under which the loan will be disbursed successively over a period of three years. Repayment will start after the fourth year and will last six years, at an annual interest rate of slightly above 1%.

The loan will be used as support in stabilising the financial sector for the purpose of implementing the necessary reforms.

Parodi said that the aim was to improve the business environment, reduce public debt and administration, and preserve the stability of the financial sector.

Last update: Mon, 29/08/2016 - 12:59


More from Balkan

Mladic's defence claims he is innocent

The defence for former Bosnian Serb war-time commander Ratko Mladic said on Friday in a closing statement before the...

Bosnian Croat military police officer gets 10 years in jail for war crimes in Orasje

The Court of Bosnia and Herzegovina has sentenced, pending appeal, a former commander of the Military Police of the...

Bosnian businesses expand halal production, eye exports

 Bosnian banks, food producers and hoteliers are adopting halal standards to tap a fast-growing market thanks to the...

Greek court blocks extradition of a further two Turkish soldiers

The legal tug-of-war regarding the extradition of eight Turkish soldiers from Greece continues.

Bosnia FM for defusing arguments with Croatia

Croatia remains an important neighbour and unavoidable partner to Bosnia and Herzegovina (BiH) and all problems in...