Chairman Zvizdić and Minister Bevanda with IMF Delegation

Chairman of the Council of Ministers of BIH Dr Denis Zvizvić and Deputy Chairman and Minister of Finance and Treasury of BIH Vjekoslav Bevanda received a delegation of the International Monetary Fund, led by Head of Mission Ron van Rooden, in order to discuss possible conclusion of a new arrangement with this institution. 

Chairman Zvizdić emphasised that it is of particular importance that the BIH reform agenda was adopted at yesterday’s Council of Ministers session, and that it should be a good signal for international financial institutions, as well, wishing to offer support to BIH though various programmes. He added that the Council of Ministers of BIH has clearly demonstrated its determination for reform implementation, which is of relevance for agreements with the IMF on a new Stand-By Arrangement.

The noted that the basis of the new arrangement with the IMF should be,  to a considerable extent, the adopted reform agenda, along with earlier defined areas requiring accelerated implementation of social and economic reforms.

Minister Bevanda stressed that the Ministry of Finance and Treasury of BIH is in a final stage of preparation of a Salary Policy document, adding that significant savings have been already made at the level of BIH, starting from decrease of basic salary to decrease of emoluments for ‘daily meal’, per diem and holiday benefit.

He said that a 2016-2018 Global Fiscal Framework and Document of Framework Budget (DOB) are expected to be adopted by the end of this month, so as to allow for completion of the budget adoption procedure within the legal deadlines.

The IMF representatives expressed their pleasure for the BIH level authorities are ready for economic reform implementation, and reminded that the basic tasks, as with the previous arrangement, are the cut of public spending, containing employment in administration, data exchange among taxation administrations and improvement of tax debt collection, and prevention of budget deficits at lower levels of government.

The IMF delegation stays in BIH until June 24 for meetings with Entity Governments representatives.

The meeting was attended by IMF Resident Representative in BIH Riben Atojan.

 (end)