IMF Approves 553.3 Million Euro Loan Arrangement for Bosnia and Herzegovina

The Executive Board of the International Monetary Fund (IMF) approved a three-year extended loan arrangement for Bosnia and Herzegovina worth about 553.3 million euros ($619.7 million) to support the country's economic reform agenda. 
The Executive Board’s decision will enable an immediate disbursement of SDR 63.4125 million (about 79.2 million euro), and the remainder will be available in 11 installments subject to quarterly reviews, according to IMF. 
The new three-year IMF-supported program aims to address Bosnia and Herzegovina’s medium term balance of payment need, and the availability of IMF financing will allow the release of compression in public capital spending. It will also support policies for boosting economic potential and maintaining macroeconomic stability. 
The arrangement will also help improve coordination and cooperation among the authorities in Bosnia and Herzegovina to strengthen the single economic space. 
The extended fund facility deal was initially agreed in May by IMF staff and authorities of Bosnia's multiple governments in May. The deal carried a 4.5-year grace period in exchange for a set of structural reforms and measures to safeguard financial stability. 
The program will replace a 33-month, $720 million program which expired in June 2015 after the IMF froze it because of delays to pledged reforms by the government. 

Source : QNA