Minister Vrankić Talks with IMF Mission Country Director Costas Christuo



Deputy Chairman of the Council of Ministers of B-H and Minister of Finance and Treasury Dragan Vrankić talked today in Sarajevo with Head of IMF Mission in B-H Costas Christuo, on the IMF Stand-By Arrangement Fourth Review.

Minister Vrankić informed IMF representatives that the Draft 2011 Budget of B-H Institutions has been prepared based on a Letter of Intent on Stand-by Arrangement, agreed by the Fiscal Council of B-H with IMF in August and September 2010. This Draft Budget for 2011 includes total expenditures which are at the same level as in 2010.

As it was stressed at the meeting, the main purpose of IMF Mission to B-H to agree the following arrangements with the Fiscal Council of B-H until November 15 (the first meeting schedulef for next week and the second for November 15):

-          Global Framework of B-H Fiscal Balance and Policy for 2011-2013, to include allocation of indirect taxes   revenue between two levels of authority, which is a prerequisite for disbursement of the European Commission macrofinancial assistance;

-          Detailed fiscal tables and Budget positions for all level of authorities for 2011;

-          Methodology and Plan for improvement of Fiscal Council operation and role in the coordination of B-H fiscal policy.

A joint methodology for a comprehensive expenditure analysis for B-H and Entity level was assessed as required. The Fiscal Council of B-H will use the results of this analysis to prepare the Global Framework of B-H Fiscal Balance and Policy for 2012-2014.

The meeting was attended by IMF resident representative of in B-H Milan Cuc. The Mission will continue its talks with Entity and State representatives in B-H. (end)