IMF approves EUR 553mn loan for Bosnia

The Executive Board of the International Monetary Fund (IMF) on Wednesday decided, as expected, to approve a new loan for Bosnia and Herzegovina worth slightly more than EUR 550 million.

The IMF confirmed on its Twitter account that at its session in Washington the Executive Board decided to formally approve the payment of EUR 553.3 million over a three-year period.

The loan was approved under the Extended Fund Facility, designed to serve as long-term support to countries that need more time to implement systemic financial and economic reforms.

Bosnia and Herzegovina should start paying back the loan in 2020 and do it over a period of six years with an annual interest rate of just above one percent.

Even before the loan was approved, the Bosnian government on Monday decided to withdraw, by the end of September, the first instalment in the amount of some EUR 78.7 million to be divided between the country's two entities, the Federation of Bosnia and Herzegovina and Republika Srpska.

Most of the money will be used to patch up holes in the entity budgets that are faced with a chronic lack of revenue. In return, the two entities have pledged to reduce public spending, reform their labour markets and consolidate their commercial banking sectors.

Last update: Thu, 08/09/2016 - 10:54

More from Balkan

Slovenia erecting panel fence along Croatia border

Slovenia started putting up a metal panel fence at its biggest border crossing with Croatia, Bregana-Obrezje, on...

Dodik to abandon EU path if Bosnian Serb entity sanctioned for referendum

The President of Bosnia and Herzegovina's Serb entity Republika Srpska, Milorad Dodik, on Friday threatened that the...

Serbia will not increase accommodation capacity for migrants

Serbia has been given additional funds by the European Union to manage the migrant crisis during the winter, but it...

Athens clearing up centre after overnight anarchist riots

The centre of the Greek capital Athens was being cleared up Thursday after a night of rioting by anarchists that...

Macedonian elections set for December 11

Macedonia's parliament Tuesday set December 11 as the date for elections, local media reported.