FBiH gets on thin ice with IMF

A new opportunity for negotiations with the IMF about a stand-by arrangement with BH will not be available before September, and FBiH will need to carry out another budget revision, but without the help of IMF’s funds.

Assistant finance minister of FBiH – Emir Silajdzic – announced this yesterday, after the IMF rejected FBiH’s budget revision by not agreeing to veteran allowances being exempt from cuts. It argued that FBiH had changed its position since the letter of intent that way.

Silajdzic said that, most probably, spending would be reduced in the next 45 days, to enable a revision.

“The IMF is a serious institution. You cannot toy around with them. The World Bank would not even talk with us. Our revenues are BAM 470 million short. We need to balance our budget without them, and we could have done it with two tranches of the stand-by arrangement. This way, cuts will need to be suffered by all who were against the emergency law”, Silajdzic said.

FBiH’s PM elect Mujezinovic said he is optimistic, and that the stand-by arrangement issue had not failed yet. A press conference about FBiH’s financial situation is expected today.