IMF Executive Board to approve nearly 400 million KM for BiH today?

The Executive Board of the International Monetary Fund is expected to consider the approval of the sixth and seventh tranches of the loan to Bosnia and Herzegovina today, which have been increased to around 400 million marks, or 190 million euros, due to the floods, it was unofficially confirmed to the BiH news agency Patria (NAP) from the IMF office in Sarajevo.

The Board will most likely convene in the afternoon BiH time, and a green light is expected for a significant financial injection into the budgets in BiH, although the meeting has not yet been announced on the official IMF website. After that, it will take a day or two for the money to 'land' in the account of the Central Bank of BiH.

Earlier this month, the sixth and seventh tranches were unblocked, after excise taxes on cut tobacco were introduced, thus fulfilling the last condition. Finance Minister Ante Krajina told our agency a few days ago that he expects the tranches to be approved on June 30.

The Government of FBiH, at its last session, made a decision to accept the increased credit arrangement, NAP reports. FBiH will thus receive an additional 92,029,544 KM, which amounts to 49% of the total additional funds approved for Bosnia and Herzegovina in the amount of approximately 187,815,396 KM.

These funds will be approved for BiH under the same conditions as the entire loan, for a period of five years with a grace period of three years and an interest rate of about 1 percent.