Zvizdić: Better arrangement with IMF than a loan from commercial banks

Chairman of the Council of Ministers Denis Zvizdić and his deputies, Minister of Finance and Treasury Vjekoslav Bevanda and Minister of Foreign Trade and Economic Relations Mirko Šarović, today held a meeting with a delegation of the International Monetary Fund (IMF) led by Mission Chief Nadeem Ilahi, reports the Bosnian news agency Patria.

Chairman Zvizdić and Ministers Bevanda and Šarović expressed interest in concluding a new arrangement with the IMF, emphasizing that such programs, in addition to securing loans at the lowest interest rates, also guarantee effective implementation of structural reforms.

Chairman Zvizdić stressed that the Council of Ministers of Bosnia and Herzegovina gives priority to an arrangement with the IMF over borrowing from commercial banks, and that IMF programs provide technical support, monitoring in the implementation of structural reforms, and involvement of other international financial institutions. 

He added that the implementation of the Reform Agenda is a key goal of the Council of Ministers of BiH, and that guidelines from the new arrangement with the IMF would contribute to the effective implementation of economic reforms necessary for BiH at all levels of government.

Minister Bevanda pointed out that the budget of BiH institutions for 2016 will be adopted by the end of this year and that there will be no risk of a decision on temporary financing, and that the budget framework remains unchanged. 

The Minister of Finance and Treasury of BiH noted that there are positive indicators that obligations related to the settlement between entities based on VAT revenues will soon be fulfilled, and that activities on efficient collection of debts based on indirect taxes will continue.

Ilahi emphasized that he is encouraged by the macroeconomic indicators in BiH, and that efforts should be made to maintain this trend with additional activities to improve control of fiscal policies, implementation of reforms, and reduction of public spending.

The IMF delegation is staying in BiH from October 28 to November 11 to conduct a review based on talks with representatives of entity governments, the Council of Ministers, and relevant institutions, ahead of an assessment and decision on a new arrangement or a favorable program acceptable to both the IMF Board and the authorities in BiH.

The meeting also discussed BiH's European path, the submission of the application, and strengthening the capacity of institutions in BiH that will bear the brunt of activities related to EU accession. It was emphasized that it is necessary to ensure space for new investments that will strengthen the economy and increase employment. The meeting was also attended by the IMF Resident Representative for BiH, Francisco Parodi.