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
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, 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

20 Nov 17

Serbia’s IMF Arrangement Ends on High Note

Belgrade’s 1.2 billion euro Stand-By Arrangement with the IMF is slowly coming to its end on a positive note, though experts warn that some serious challenges for the economy still lie ahead.

20 Nov 17

Turkey’s ‘Iron Lady’ Poses Challenge to Erdogan Regime

A new party led by Meral Aksener, a determined woman from a Balkan background, promises to shake up Turkey’s politics and give President Erdogan a run for his money.