BIH Fiscal Council in Its 5th Session considers Draft Letter of intent for new Stand-By Arrangement

The Fiscal Council, chaired over by Vjekoslav Bevanda, arrived at an agreement with a delegation of the International Monetary Fund, led by Its Head of Mission in BIH Costas Christou on majority of issues from a Draft Letter of Intent for conclusion of a new Stand-By Arrangement with the IMF. 

The IMF delegation will revise the Letter of Intent and send it to the Fiscal Council for consideration, and if accepted, it will be forwarded to Washington for review.

According to their understanding, a new IMF arrangement would last two years with a possibility of tis prolongation for another year.

The Federation of BIH and Republika Srpska undertook to adopt Budget Rebalance and agree on reconciliation between Federation of BIH and Republika Srpska on indirect tax revenues allocation and on implementation of agreed structural reforms measures, which would allow Bosnia and Herzegovina to conclude a the new Stand-By Arrangement. In case it is approved, its two tranches would be available for disbursement by the end of this year.

Signing the letter of Intent with the IMF will provide resources for reform implementation in BIH both form the European Commission and the World Bank. 

Other than Chairman of the Council of Ministers of BIH and Chairman of the Fiscal Council Vjekoslav Bevanda and Deputy Chairman of the Council of Ministers and Minister of Finance and Treasury Dr Nikola Špirić, , the session was attended by Entity Prime Ministers Nermin Nikšić and Aleksandar Džombić, Finance Ministers of the Federation of BIH Ante Krajina, and of Republika Srpska Zoran Tegeltija. On behalf of the Governor of the Central Bank of BIH, the session was attended by CB BIH Vice-Governor Dr. Radomir Božić and Mato Lučić, representative of the Brčko District of BIH. 

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