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
Author: 

Related

More from Balkan

Vucic, Zvizdic say Serbia, Bosnia committed to dialogue

Serbia and Bosnia and Herzegovina are committed to dialogue and cooperation, and they can enhance their relations...

Ljubljana to transport its plastic waste to Vienna incinerator

Waste plastics collected in the Slovenian capital of Ljubljana will be transported to Vienna for incineration in one...

Nikolic, Vucic to attend Brussels talks on relaxing Serbia-Kosovo ties

The Serbia-Kosovo negotiations on the normalisation of the relations between those two neighbouring countries will...

Serbia to receive additional EUR 4mn from EU for migrants

Serbia will receive an additional EUR 4 million in aid for migrants, European Commissioner for Humanitarian Aid and...

Bank of China opens Belgrade branch

The Bank of China formally opened its branch in Belgrade on Saturday, which is expected to provide an additional...