The Chairman of the Council of Ministers of Bosnia and Herzegovina, Zoran Tegeltija, held a meeting via video link of the 2nd session of the Fiscal Council of BiH, Klix.ba news portal reports.
The letter of intent was adopted at the session with the International Monetary Fund (IMF), requesting BiH to provide financial support under the rapid financing instrument as part of efforts to curb the spread of coronavirus.
It was noted that Bosnia’s fiscal position was significantly improved during the previous arrangement with the IMF, which allowed some fiscal space to cover the economic cost of the coronavirus so far, and that the surplus in the last two years has averaged close to 2 percent of gross domestic product.
The fiscal position is expected to be a deficit this year due to a significant reduction in budget revenues, much higher spending on health care, and additional social and economic support from the budget due to the effects of the coronavirus pandemic.
IMF funds will be used to increase health care needs and finance economic stabilization measures, and the Fast Financing Facility is expected to act as a catalyst to support other international financial institutions.
In addition to the Letter of Intent, the Fiscal Council of BiH also considered and adopted the 2019 Budget Execution Report and the Fiscal Council of BiH Budget Proposal for 2020.