Đonlagić for NAP: IMF loan will not revive Bosnia and Herzegovina's economy

The Executive Board of the International Monetary Fund (IMF) yesterday approved a loan to Bosnia and Herzegovina in the amount of 553 million euros.

The first tranche in the amount of slightly more than 154 million KM is expected to be paid as early as tomorrow. The rest of the money will be paid over the next three years. Authorities are praising that the IMF money will bring economic stability to the country. However, little is being said about plans on how to repay that money. 

Professor Dženan Đonlagić from the Faculty of Economics in Sarajevo told the Patria News Agency that he believes it is not good that BiH is borrowing to finance its cumbersome administration. 

- BiH did not receive funds from the IMF as is often presented. The current government of SDA and SBB, HDZ BiH and SNSD, by newly indebting citizens, and through signatures in a "tavern" instead of the state parliament, has shown that the economic policy model is completely wrong – believes Professor Đonlagić.

- What is contained in the so-called Letter of Intent, to which all authorities have committed, will not revive the economy. There is nothing developmental there! When you have an economy in which over 60 percent of GDP is spent on financing a party-loyal, entrenched, and above all incompetent administration, then additional borrowing by the country inevitably leads to a medium-term budget collapse. With this way of conducting domestic economic policy and managing public debt, I can only say that this is an economy that kills! – Đonlagić told NAP.