Council of Ministers Leaders Discuss with IMF New Arrangement

Chairman of the Council of Ministers Dr Denis Zvizdić and his Deputies, Minister of Finance and Treasury Vjekoslav Bevanda and Minister of Foreign Trade and Economic Policy Mirko Šarović held a meeting today with the International Monetary Fund delegation, led by Head of Mission Nedeem Ilahi. 

Chairman Zvizdić and Ministers Bevanda and Šarović expressed their interest for conclusion of a new arrangement with the IMF, stressing that such programmes, besides from ensuring the lowest interest rate loans, guarantee an effective implementation of structural reforms.

Chairman Zvizdić emphasised that the Council of Ministers prefer an arrangement with the IMF over borrowing from commercial banks, adding that IMF programmes enable technical support, monitoring, of structural reforms implementation and co-lending by other IFIs.

He indicated that the Reform Agenda implementation is the key aim of the Council of Ministers of BIH, and that directions entailed in the new IMF arrangement would contribute to more effective economic reforms implementation, necessary for BIH at all levels of competences.

Minister Bevanda pointed out that the BIH Institutions Budget for 2016 will be adopted by the end of this year and that there will be no risks of decision taking on temporary financing, and added that the Budget framework remained unchanged.

The Minister of Finance and Treasury of BIH pointed at positive indicators of soon fulfilment of obligations in regard to VAT revenues-related settlement between the Entities, adding that effective debt collection activities as to indirect taxes will be continued.

Ilahi underlined that he was encouraged by macroeconomic indicators in BIH, and that efforts should be taken to preserve the trend, by employing additional activities to improve fiscal policy control, reform implementation and public sending reduction.om

The IMF Delegation stays in BIH in period October 28 – November 11 with a task to hold discussions with representatives of the Entity Governments, Council of Ministers and relevant institutions in order to prepare a assessment document ahead of decision taking on either a new arrangement or favourable programme acceptable to both the IMF Board and BIH authorities.

The meeting dealt with the European road of BIH, EU membership application submission, and strengthening capacities of BH Institutions to hold the major part of EU accession-related activities.

It was stressed that a room for new investments is necessary to secure in order to strengthen economy and increase employment.

The meeting was attended by the IMF resident Rpresnetative for BIh Francisco Parodi.

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