No agreement yet: 641 million KM from the IMF has been 'lying' in the account for 15 days, BiH is paying penalties

SARAJEVO, (Patria) - As early as April 23, i.e. 15 days ago, funds were transferred to the relevant accounts at the Central Bank of Bosnia and Herzegovina (CBBH) under the Rapid Financing Instrument arrangement with the International Monetary Fund (IMF) in the amount of 641 million KM. The money has never been distributed.

In addition to interest and other obligations that became active the moment the IMF paid the funds into the account of the Central Bank of BiH, given that the account is opened in a commercial bank, BiH must also pay a negative interest rate, meaning it has to pay a fee for holding the money in the account, i.e. for not withdrawing it.

For the fiscal agent of BiH, the Central Bank of BiH, to distribute the money to the entities according to previously established distribution percentages, relevant documentation must be submitted.
However, even the CBBH is waiting for official steps from the Ministries of Finance to be able to react. Minister Vjekoslav Bevanda sent a promissory note, but there is still no distribution.

We remind you that the Council of Ministers of BiH has not made a decision on withdrawing funds from the International Monetary Fund, and the IMF has approved a loan to Bosnia and Herzegovina from the so-called Rapid Financing Instrument to combat the coronavirus pandemic and mitigate its economic consequences. The CBBH could not officially say when the distribution would occur, but it is certain that without documentation, there will be no activities.

This is yet another piece of evidence that BiH is losing its reputation on the international stage due to inadequate internal agreement and action. The agreement on the distribution of money was previously reached at a meeting between the presidents of SNSD, Milorad Dodik, HDZ BiH, Dragan Čović, and SDA, Bakir Izetbegović, after pressure from the international community. The decision correctly stated the distribution of funds, with the Federation of BiH receiving 61.5 percent, Republika Srpska 27.5 percent, and Brčko District 1 percent (receiving 0.5 percent each from the FBiH and RS), but HDZ insists that cantons be subjects in the distribution of this money, which four members of the Council of Ministers (SDA, DF, and SBB) could not accept, as the FBiH incurs debt for them and repays it.