Analysis 03 Mar 17

Reform Logjam Threatens Bosnia’s Hopes of IMF Cash

Financially drained by feuding politicians who have repeatedly ducked key reforms, Bosnia again faces a possible liquidity crisis if the troubled IMF program is not unblocked.

Maja Garaca Djurdjevic
BIRN
Banja Luka
IMF building in Washington. Photo: Simone D. McCourtie/World Bank/Flickr

The first review of Bosnia’s three-year funding arrangement with the International Monetary Fund, IMF, risks being delayed indefinitely, when the country’s many institutions desperately need a cash injection.

Francisco Parodi, IMF resident representative in Bosnia, told BIRN that Bosnia may need to wait several more months before it sees any IMF cash if it fails to meet the reform targets.  “If we don't reach an agreement in the next few weeks … we will need to postpone the review even further,” Parodi said.

Last September, the IMF approved a three-year 553.3-million-euros extended arrangement for Bosnia - but hinged disbursement of funds on reforms improving the economy.

Bosnia has not received any IMF money since it pocketed 79.2 million euros ahead of last October’s general election.

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