BiH still a long way from concluding a new deal with the International Monetary Fund

Bosnia and Herzegovina is still a long way from concluding a new agreement with the International Monetary Fund and, as Nezavisne Novine confirmed by the IMF, € 300 million in aid to BiH is expected to be disbursed before the end of the month.

As a reminder, “Nezavisne novine” predicted such an outcome six months ago after it became clear that the IMF would not deviate from the demand for reforms, and especially after the IMF pledged assistance to the BiH.

While the IMF’s idea is well-intentioned, to help BiH cope more easily with the consequences of the coronavirus, domestic politicians have interpreted that money can be obtained without implementing reforms.

Namely, on the eve of the start of a new round of negotiations on the deal last year, the IMF set reasonable but difficult conditions for Bosnia and Herzegovina to reach a new deal, which aimed to better monitor cash flow, prevent money laundering, strengthen the taxation system and implement structural reforms.

For example, if BiH adopted the condition that the register of accounts of individuals is located at the Central Bank of BiH, it would be much more difficult to handle money laundering, as it would be possible to easily control the cash flow in central registers.

From a source who was involved in the talks with the IMF while they were going on, Nezavisne learned that national authorities suggested that the entities have central registers that the Central Bank could access after sending an official request to obtain an overview.

The source indicated that the IMF rejected this condition because it would be possible to withdraw the money from the account in a few seconds, which would lose the sense of control of these funds.

However, then the top IMF in Washington decided to grant virtually interest-free credits to all countries in order to help the economy emerge from the crisis caused by the covid.

The Ministry of Finance and Treasury of Bosnia and Herzegovina confirmed that there was no indication of further negotiations with the IMF.

“I hereby inform you that the last session of the Fiscal Council was held on April 22, 2021, during which a potential new agreement with the IMF was discussed, but no agreement was reached and that other talks have not been started by any of the parties. “, They said for” Nezavisne “.

About Eleanor Blackburn

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