IMF to decide on aid for BiH of 330 million euros on April 20

(Patria) - The International Monetary Fund will consider Bosnia and Herzegovina's request on April 20 and should then make a decision on the allocation of 330 million euros, it has been confirmed for Patria. BiH should receive 330 million euros from the IMF's crisis arrangement to combat the coronavirus pandemic. BiH is one of 90 requests.

An agreement on the distribution of money was reached at a meeting between the presidents of SNSD, Milorad Dodik, HDZ BiH, Dragan Čović, and SDA, Bakir Izetbegović, and that was after pressure from the international community.
38 percent belongs to Republika Srpska, 62 percent to the Federation of BiH, while both RS and the Federation will give Brčko District half a percent each of the amount they receive.

A coordination body will also be formed at the BiH level, which will decide on further economic measures, as well as monitor the distribution of money from the IMF.
At the session, which was attended by all members of the BiH Fiscal Council, a Letter of Intent with the International Monetary Fund (IMF) was agreed upon, by which BiH is seeking financial support within the framework of the rapid financing instrument, as part of efforts to suppress the spread of coronavirus.

Seven members of the BiH Fiscal Council agreed on a Letter of Intent with the International Monetary Fund (IMF), by which BiH is seeking financial support within the framework of the rapid financing instrument, as part of efforts to suppress the spread of coronavirus.

It is important to note that the Letter of Intent also states that there must be no attempts to use the foreign exchange reserves of the Central Bank for fiscal purposes, which would undermine the currency board, pose a threat to financial stability, and risk significant inflationary trends. 

In other words, this means that, in addition to the economic and humanitarian crises that BiH is currently facing, there would also be a financial and currency crisis. For this reason, if the currency board arrangement is compromised, the IMF will not provide financial assistance to Bosnia and Herzegovina within the Rapid Financing Instrument.