Bosnia and Herzegovina to borrow  400 million BAM for Urgent Fiscal Needs


House of Peoples of the Federal Parliament has adopted a decision to borrow  400 million BAM for urgent fiscal needs as part of efforts to curb the spread of coronavirus under the International Monetary Fund’s (IMF) Rapid Financing Instrument (RFI).

“Out of those 400 million BAM, 200 million BAM is earmarked for the cantons to mitigate the effects of the pandemic,” confirmed the FBiH Finance Minister Jelka Milicevic, adding that the repayment period of this loan is five years, according to Fena news agency.

The aforementioned amount of funds will be used for increased health needs and for the financing of economic stabilization measures.

The House also adopted a second decision under which the Federation of BiH takes on a loan of 19,859,900 euros for the emergency Covid-19 project for Bosnia and Herzegovina. This is an agreement between Bosnia and Herzegovina and the World Bank – International Bank for Reconstruction and Development (IBRD).

Considering that the above decisions and liabilities were passed earlier in the House of Representatives, they shall enter into force on the day following its publication in the Official Gazette of the Federation of BiH.

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