Council of Ministers: Loan of 20 million dollars from IBRD to combat COVID-19

SARAJEVO, (Patria) - The BiH Council of Ministers adopted the Initiative of the Ministry of Finance and Treasury and appointed a delegation to conduct negotiations for the conclusion of a Loan Agreement between Bosnia and Herzegovina and the International Bank for Reconstruction and Development (IBRD) for the COVID-19 Emergency Support Project in BiH, worth 20 million US dollars.

This is a new financial instrument on an urgent basis, which will enable a wide range of support, including efforts to strengthen disease surveillance, promote public health interventions, and work with the private sector to reduce the impact on the economy.

This support includes areas such as medical supplies and equipment, testing kits, hospital equipment, construction of health facilities for emergency medical assistance, medical waste disposal, as well as support for social benefits.

Redirect IPA 2018 funds to coronavirus and migration response

The Council of Ministers gave its consent for the redirection of funds from state IPA 2018, IPA 2019, and IPA 2020 programs for Bosnia and Herzegovina for the needs of the response to COVID-19 and the migration crisis, as proposed by the EU Delegation to Bosnia and Herzegovina.

The Directorate for European Integration, i.e., the state coordinator for IPA II, will immediately inform the EU Delegation to Bosnia and Herzegovina about the acceptance of the proposed redirections of IPA 2018, 2019, and 2020 as assistance for the response to COVID-19 and the migration crisis.

Two million euros from IPA 2018 were not utilized and can be redirected for a contract with the UN Agency for Medical Supplies and Equipment for the COVID-19 response, while 10 million euros will be redirected to support migration.

At the same time, 14 million euros will be provided from IPA 2019 and 2020 to support small and medium-sized enterprises, and the trade sector will be supported with four million euros.

The amount for the General Instrument for European Integration, which can be used for emergency support for COVID-19, will be increased by 18 million euros.

This way, Bosnia and Herzegovina will have funds quickly available to respond to the COVID-19 epidemic and to migration.