Fiscal Council of BIH and IMF in Meeting

The BIH authorities are determined to continue cooperation with the IMF, this was a message following today’s meeting of the Fiscal Council of BIH with a IMF delegation, led by IMF Head of Mission Costast Christou. 

At the meeting, chaired over by Chairman of the Council of Ministers of BIH Vjekoslav Bevanda, it was decided that technical discussions should take place within next two weeks for which time prepared proposals should be considered, to be followed by a decision-taking on  whether or not the negotiations with the IMF will be continued.

“The IMF representatives presented their views on the Entity Budgets. The State Budget structure is assessed as appropriate, if adopted as proposed at the Parliamentarian Assembly of BIH”, Chairman Bevanda said, warning that without the arrangement without an arrangement with the IMF arrangement the European Commission funding would not be available.

According to Chairman Bevanda, the next steps were identified for coordination policy, which incorporates a financial and monetary vision.

“We need to maintain the currency board policy, as it allowed for the fiscal sector stability. Also, disagreements between Republika Srpska and the Federation of BIH must be resolved concerning the indirect tax revenue allocation. We have to enhance the State and Entity taxation authorities’ coordination and improve their capacities. Foreign debt servicing must not be uncertain, ever. On structural reforms, the discussion will focus on social sector benefits, health care system, and verification of obligations towards the health and pension funds. A special discussion will unfold on a more favourable retiring, dismissed soldiers, curbing-up public spending, court awards issue, improvement of financial stability bodies’ accountability, and strengthening of the Central Bank and relevant Entity regulatory bodies, including defining a possible stand-by arrangement with the IMF ”, Chairman Bevanda said, adding that there will be no reschedule or terms renegotiation.

The performance we present in the next two weeks will determine the continuation with the IMF arrangement“, stated the Chairman of the Council of Ministers.

The Fiscal Council session was attended by its members: Chairman of the Council of Ministers of BIH Vjekoslav Bevanda; Entity Prime Ministers Nermin Nikšić and Aleksandar Džombić; Finance Ministers of BIH Nikola Špirić, of the Federation of BIH Ante Krajina and of Republika Srpska Zoran Tegeltija, and Governor of the Central Bank of BIH Kemal Kozarić, with members of the CB Advisory Board.

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