Atojan: Damages are huge, recovery depends on the speed of aid arrival

The International Monetary Fund (IMF) expects the pace of economic recovery in BiH to slow down considerably this year, said Ruben Atoyan, resident representative of this financial institution, for the BiH news agency Patria (NAP). At the same time, they are prepared to increase the amount of money that could be available from 90 million to 180 million KM, after the IMF Executive Board approves it.

- It is clear that the floods and the large number of landslides have caused enormous damage. And the level of recovery slowdown will depend on the speed at which international support for reconstruction is mobilized - said Atoyan.

After the authorities introduced excise taxes on cut tobacco, the possibility of paying out two tranches of loans for BiH opened up, but a date for the Executive Board meeting has not yet been scheduled. Unofficially, it is expected to be by the end of this month, but Atoyan could not confirm this.

Otherwise, the IMF has previously stated that it is ready to help Bosnia and Herzegovina in resolving the consequences of this disaster.

- Government finances will be exposed to a significant drop in revenue and the need for additional financing. In order to help ensure the continued functioning of governments, the IMF mission has reached an agreement with the authorities on a set of measures that focus on improving tax collection and preserving the integrity of the financial system, which, if implemented, will ensure that the IMF Executive Board considers the combined sixth and seventh reviews under the Stand by arrangement - said the IMF, reports NAP.