International Monetary Fund approved 330 Million Euros to Bosnia and Herzegovina

The Board of Directors of the International Monetary Fund approved a 330 million euro loan in Washington to combat the pandemic of the coronary virus that Bosnia and Herzegovina sought in a letter of intent, is confirmed to Srna news agency by the Chairman of  Council of Ministers Zoran Tegeltija.

“Funds are approved. The board of directors session is over and they unanimously supported the decision to approve BiH funds,” said Tegeltija, who is also chairman of the Fiscal Council.

IMF funds will be used to finance the remediation and mitigation of adverse economic consequences, The SarajevoTimes reports.

This decision has been formally addressed to Bosnian government representatives and members of the Fiscal Council.

SNSD leaders Milorad Dodik, HDZ BiH Dragan Covic and SDA Bakir Izetbegovic on April 11th met with EU and IMF officials and reached an agreement to unblock € 330 million from the IMF for BiH, according to which Republika Srpska was owed 38 percent and the Federation of Bosnia and Herzegovina 62 percent of loans.

Both entities will allocate half a percent for the Brcko District.

The IMF will continue to monitor Bosnia and Herzegovina’s situation closely and stands ready to provide policy advice.

Following the Executive Board discussion, Mr. Tao Zhang, Deputy Managing Director and Acting Chair, issued the following statement:

“Bosnia and Herzegovina’s economy has been suffering from the COVID-19 pandemic, which has created an urgent balance of payments need.

“Given the large and rapid deterioration of external accounts, the Rapid Financing Instrument will help provide support for scaling up priority spending on health and social assistance, while preserving debt sustainability.