Concluding a new arrangement with the IMF will depend on progress in implementing reforms

Prime Minister of the Federation of Bosnia and Herzegovina Fadil Novalić and Deputy Prime Minister and Federal Minister of Finance Jelka Milićević, with their associates, discussed today at the seat of the FBiH Government in Sarajevo with a delegation of the International Monetary Fund, led by Head of Mission for BiH Nadeem Ilahi.

The delegation of this international financial institution also included the IMF Resident Representative in BiH Francisco Parodi and Chief Economist Dora Benedek.

The IMF delegation has been staying in BiH since October 28 in order to, after talks with representatives of the Council of Ministers, entity governments, and other institutions, review the situation in preparation for the decision on a new loan arrangement or program that would be favorable to both the IMF Executive Board and the authorities in BiH.

Ilahi emphasized that he is encouraged by the positive processes visible in the Federation of BiH, particularly highlighting the results of the FBiH Government in implementing the Reform Agenda.

Concluding a new arrangement with the IMF, as well as other international financial institutions, according to Ilahi, will depend on progress in implementing reforms and achieving the set goals on the path to economic recovery in Bosnia and Herzegovina.

He highlighted issues such as the budget projection for 2016, reduction of current spending and restrictions on employment in the public sector, pension insurance reform, and public administration reform, among others.

Prime Minister Novalić highlighted the results achieved so far in implementing the Reform Agenda, stating that this year was difficult because reform laws in the area of labor legislation needed to be adopted, and that next year work will continue on improving the business environment for investors, which includes faster issuance of permits for the registration of business entities, stronger control of parafiscal charges, the fight against the grey economy, and incentives for employment.

One of the main goals emphasized in the Reform Agenda for the next year is the adoption of the law on concessions and public-private partnership, as well as the continuation of activities from the Reform Agenda.