BiH needs to continue with planned reforms, savings and hiring restraint as foreseen by the budget for this year, BiH FinMin Vjekoslav Bevanda and a visiting IMF mission agreed on Monday. Bevanda briefed IMF officials about the process of adoption of amendments to deposit insurance law that has been withdrawn from parliamentary procedure because of lack of support of parliamentary majority. In the Letter of Intent BiH authorities have committed to pass the changes by end-March.
The IMF Executive Board completed the first review under the EFF with BiH on Feb 9 and approved the disbursement of EUR74.6m tranche. The release of the second tranche has been blocked for a year because BiH authorities failed to meet the agreed reform actions on time. The Fund has supported the authorities’ request to extend by 12 months the arrangement and reschedule of payments because of the delay in completing of the review.