IMF Seeks Precise Information on the State of Banks in BiH

At a recent meeting between the IMF and BiH Minister of Finance Vjekoslav Bevanda, who is also BiH's governor in this institution, it was confirmed that BiH faces problems in obtaining a new large loan. The International Monetary Fund does not want to conclude a loan agreement because it lacks answers regarding the true state of the banking sector following the collapse of Bobar Bank and the crisis in several other banks, Patria reports. 

The IMF warns about the situation at Bank of Srpska, formerly Balkan Investment Bank. The bank has been closed and ceased operations, and its portfolio is completely unknown to supervisory institutions.   

Namely, the IMF demands that all banks operating in BiH be subjected to an audit of their operations by reputable European auditing firms. For now, the state of these banks, their financial stability and capitalization remain completely unclear. The IMF fears a domino effect and new, unexpected banking collapses, Patria reports.