Loan up to 20 million dollars to combat COVID-19

(Patria) - The Government of the Federation of BiH supported the initiative to secure funds for financing urgent support in response to COVID-19 in Bosnia and Herzegovina through a loan from the World Bank, in the amount of up to 20 million dollars. The final distribution of these funds between the entities will be determined before or during the negotiations.

Information about this World Bank loan was accepted as a basis for conducting negotiations, and the federal ministries of finance and health were tasked with appointing their authorized representatives to the loan negotiation team. The final decision on the loan will be made after the completion of negotiations with the World Bank, with whom the final terms of the loan will be determined. The Federal Ministry of Finance will submit information on the negotiations and the text of the agreed loan agreement between BiH and the World Bank to the Government of the Federation of BiH. This ministry is tasked with submitting this conclusion to the Ministry of Finance and Treasury of BiH in order to carry out further procedures related to the loan.

The loan information stated that the World Bank Group expressed its readiness to make an urgent support package available through IBRD loans as assistance to countries in their efforts to prevent, detect, and respond to threats caused by COVID-19.

The proposed financial instrument, which is being approved on an accelerated basis, allows for a wide range of support, including disease surveillance efforts and work with the private sector to reduce the impact on economies. Proposed COVID-19 related financing areas include medical supplies and equipment, testing kits, hospital equipment, preparedness, capacity building and health facilities for emergency medical care, training, medical waste disposal, community discussions and dissemination of information to the public, emergency food support, emergency social benefit/support payments, overtime payments and risk compensation for medical staff working in an emergency, and project implementation and monitoring.

The goal of the proposed emergency financial assistance is to support the country in its work and response to the threat posed by COVID-19, as well as to strengthen national public health preparedness systems. Given the urgent need for action in numerous areas to anticipate the impacts, the need for a longer-term program has also been indicated, considering the systemic weaknesses of basic public health functions.