Djonlagic: IMF's loan will not recover BH economy

The Executive Board of the International Monetary Fund yesterday approved a loan of 553 million EUR for BH Government.

The first installment of app. 154 million KM is likely to be paid already tomorrow. The remainder of the loan fund will be paid within the next 3 years. The government representatives boast how the IMF's money will bring economic stability to the country. However, very little has been said about how the money would be paid back.

Professor of Economic faculty in Sarajevo Dzenan Djonlagic shared with us his opinion about the IMF loan. He believes it is not good for BiH to keep borrowing money in order to finance its enormous administration.

- It is not BiH that got the funds from the IMF, as it is often presented. The actual government consisted of SDA and SBB, HDZ BiH and SNSD has shown by placing yet another burden upon the citizens (arranged at a restaurant instead of at the state Parliament), that the current model of the economic policy is entirely wrong, professor Djonlagic thinks.

- The content of so-called 'Letter of Intent' that the government has committed to, is not going to recover the economy. There's no mention of development in there! When you have an economy in which over 60% of GDP is spent on financing an entirely incompetent, self-indulgent administration selected on the basis of the political party membership criterion, then any additional borrowing inevitably leads to mid-term budget collapse. All that I can say about this way of managing domestic economic politics and the public debt is that – it is a fatal economy! Djonlagic said.