BiH Authorities agreed on a supplementary Letter of Intent with the IMF

b_161122109After the session of the Fiscal Council of BiH, which was attended by the IMF delegation, the Chairman of the Council of Ministers of BiH Denis Zvizdić stated that after a very reasoned and detailed discussion they agreed on a supplementary Letter of Intent with the IMF.

“A certain number of corrections of proposed solutions were accepted and in the next few days we will finalize it within a final text of the supplementary Letter of Intent between BiH and the IMF,” Zvizdić stated.

According to Zvizdić, all previous and structural measures have been defined and aimed at strengthening the fiscal financial stability of BiH; strengthening the banking sector to which a special attention has been paid; harmonization of laws on the level of BiH, those which are important – from the law on contributions to the law on pension and disability insurance; and better coordination between tax administrations and all agencies within the baking sector.

“The measure which is important to highlight is that by the end of the year the excise taxes on oil and oil products will be adopted, in order to continue the foreseen dynamics of construction of highways in BiH,” said Zvizdić.

Zvizdić also stated that the IMF clearly stated that economic progress and development of BiH is visible, credible, developing at the foreseen dynamics and that all previous structural measures will significantly contribute to the strengthening of BIH institutions and the strengthening of legislative framework in general, as well as of all systems that are important for economic development of BiH.

Head of IMF Mission in BiH Nadeem Ilahi thanked the authorities on different levels in BiH, in institutions of BiH and entity institutions, for extraordinary cooperation during negotiations which lasted for the past two weeks in Banja Luka and Sarajevo, after which they managed to reach consent on the conclusion of first overview of the arrangement, under the condition that all previous measures are fulfilled.

“The plan is that the Executive Board of the IMF approves the conclusion of the first overview early next year, under the condition that previous measures are met by then,” said Ilahi.

Ilahi added that the economic prognosis for BiH is positive with a growth which amounted to 2.6 percent this year, and it is expected that during 2017 it will amount to three and more than three percent.


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