IMF allocates SDRs worth 603 million marks (308 million euros) to Bosnia


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SARAJEVO (Bosnia and Herzegovina), August 24 (SeeNews) – The International Monetary Fund (IMF) has allocated 254 million Special Drawing Rights (SDRs) worth 602.5 million marks ($ 361 million / 308 million euros) to Bosnia and Herzegovina, the bank said on Tuesday.

The central bank will distribute the funds based on appropriate instructions from the country’s finance ministry, she said in a statement.

In response to the latest crisis caused by the COVID-19 pandemic, the IMF Governing Council on August 2 decided on a new SDR allocation of SDR 456 billion, or the equivalent of $ 650 billion, which was credited to IMF member countries in SDR currency. , on their SDR deposit accounts with the IMF, at certain quotas for each country.

The previous distribution of SDRs for Bosnia and Herzegovina took place in 2009 in order to mitigate the effects of the global financial and economic crisis.

SDRs are international reserve assets created by the IMF that can be held by member states as part of their official reserves or to pay debt and interest.

The SDR allocation is not a classic credit arrangement of a country with the IMF. The liability for this allocation consists of costs calculated monthly on the cumulative amount of the SDR allocation, which are paid quarterly to the IMF. The fee is made up of the SDR interest rate plus one basis point (0.01) for the IMF service fee. The obligation to pay the fee lies with the country’s institutions, to which the funds will be allocated according to the principle of distribution.

(1 euro = 1.95583 Bosnian mark)

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