Analysis 04 May 17

Soaring Debt Threatens Bosnia’s Liquidity

With the IMF program effectively blocked, Bosnia’s governments will have to turn to more commercial loans to cover their budgets – which come at a worryingly high price.

Drazen Simic
BIRN
Sarajevo
On April 20, Bosnian MPs failed to adopt a set of laws that would unlock a much-needed tranche of IMF money. Photo: Anadolu

Late last week the World Bank approved a new loan for Bosnia worth 56.6 million euros, aimed mainly at boosting the banking sector.

“Maintaining the stability of the financial sector is a fundamental condition for macro-fiscal stability, which in turn is a key prerequisite for economic growth,” the Bank said on April 28, citing the Bosnia and Montenegro country manager, Tatiana Proskuryakova.

“Through this project, the World Bank is providing both advisory and financial assistance to support the stability and development of the financial sector in Bosnia and Herzegovina, which will have broad benefits for citizens,” it added.

However, the banking sector is not Bosnia’s biggest economic problem, most experts warn.

Subscribe to Balkan Insight Premium to read the full article.

Please login to your account below if you are already a Premium Subscriber.

Buy Premium Subscription

Our Premium Service gives you full access to all content published on BalkanInsight.com, including analyses, investigations, comments, interviews and more. Choose your subscription today and get unparalleled in-depth coverage of the Western Balkans.

Buy Premium Subscription

If you have trouble logging in or any other questions regarding you account, please contact us

Talk about it!

blog comments powered by Disqus

Premium Selection

serbia-in-two-minds-over-new-imf-deal-07-17-2017
20 Jul 17

Serbia in Two Minds Over New IMF Deal

With the economy in relatively good shape, a question mark hangs over whether Serbia needs a fresh arrangement with the Fund.

kosovo-war-court-president-promises-impartial-justice-07-19-2017
20 Jul 17

Kosovo War Court President Promises Impartial Justice

The president of the Kosovo Specialist Chambers, Ekaterina Trendafilova, told BIRN the new court has no ethnic bias, will protect its witnesses from intimidation and deliver justice impartially and independently.

19 Jul 17

New Migrants Face Old Terrors on Balkan Route