Extended Arrangement no longer valid, the IMF wants new Negotiations?

June 22, 2017 11:30 AM

imfThe extended arrangement with the IMF, which BiH signed in September last year, is no longer valid, as confirmed by a source.

Failure to adopt the amendments to the law on excise duties regarding the financing of motorways, as well as the latest initiative to increase salaries for police officers at the level of the state, resulted in the fact that the arrangement with the IMF is no longer able to remain in its present form.

“We have to start from the beginning again. The program is no longer valid, and that is the reason why we need new negotiations and a new arrival of the mission from Washington.” We need to start new serious, meaningful and comprehensive negotiations in order to try to return the program back to the right track,” noted the source.

“We have to return to the economic indicators that changed in relation to November of last year. We need to complete the review, and it will demand additional measures, in addition to the previous activities that we agreed when concluding the arrangement,” said the same source.

The current extended arrangement was concluded in September, and it had three goals. The first referred to the implementation of structural reforms with the aim of increase of employment and strengthening of the private sector.

The second goal envisaged the achievement of sustainability of fiscal policy, i.e. putting the deficit under control, while the third goal referred to maintaining financial stability through the strengthening of banks in order to facilitate the access to capital for the private sector.

The extended arrangement is concluded for a period of three years, but it might be extended for another year if it is estimated that such a measure is necessary.

(Source: akta.ba)

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