IMF Sends Letter to Tegeltija: How Will Loans Be Repaid If RS Withdraws From Indirect Taxation Authority?

(Patria) - Head of the IMF Mission for Bosnia and Herzegovina Alina Iancu sent a letter to the Chairman of the Council of Ministers of BiH Zoran Tegeltija, requesting an urgent meeting with the BiH Fiscal Council to discuss "the implications of RS withdrawing from the Indirect Taxation Authority (UIO)."

"We are very concerned about the plans of the RS authorities, not only because the UIO is the most significant source of revenue for RS, FBiH, and Brčko District of BiH. Setting aside the issues we are not in a position to comment on, our opinion is that the withdrawal of RS from the UIO would have major economic consequences for everyone," she stated in the letter.

She emphasized that they would like to explain their concerns at the meeting and hear the Fiscal Council's views on this issue.

"We would specifically like to discuss how the timely servicing of BiH's external debt, including the debt to the IMF, will be ensured in the event of the UIO being dissolved or if it is deprived of VAT collection," Iancu stated in the letter.

The letter was also sent to the Prime Minister of FBiH Fadil Novalić, who confirmed to N1 that he received it, and to the Prime Ministers of RS Radovan Višković, Minister of Finance of BiH Vjekoslav Bevanda, Minister of Finance of FBiH Jelka Miličević, Minister of Finance of RS Zora Vidović, Governor of CBBH Senad Softić, and Mayor of Brčko District Esed Karić.