Press Release No. 17/86

IMF Staff Concludes Visit to Bosnia and Herzegovina

March 17, 2017

• IMF staff team discussed economic developments and policies for the first review of the economic program in Bosnia and Herzegovina supported by the Extended Fund Facility.
• The team was encouraged by the approval of 2017 budgets, the passage of banking laws, and the amendments to the corporate income tax and banking agency laws.

An International Monetary Fund (IMF) staff team, led by Mr. Nadeem Ilahi, visited Banja Luka and Sarajevo from March 7-17, 2017, to discuss recent economic developments and policies for the first review of the economic program in Bosnia and Herzegovina (BiH) supported by the Extended Fund Facility (EFF). At the conclusion of the visit, Mr. Ilahi issued the following statement:

“The team assessed performance against end-December 2016 program targets and discussed progress with structural reforms. The team was encouraged by the approval of sound 2017 budgets by the entities and the institutions of BiH, the passage of banking laws in both entities, and the amendments to the corporate income tax and banking agency laws, as well as the elimination of the solidarity contribution, in the Republika Srpska.

“However, the authorities still need more time to complete several remaining prior actions. In particular, the team looks forward to: the adoption of the increase in fuel excises and the amendments to the Law on Deposit Insurance by the BiH parliament; the decision to limit the 2017 employment in the Institutions of BiH by the Council of Ministers; the adoption by the Federation parliament of amendments to the banking agency law; and the launch of due diligence of BH Telecom and HT Mostar by the Federation’s government.

“The team hopes for strong progress in the implementation of these policies in the coming days—including by the parliaments—to pave the way for consideration of the first review by the IMF Executive Board by the end of April 2017.”