Bosnia and Herzegovina: Request for Purchase Under the Rapid Financing Instrument-Press Release; Staff Report; and Statement by the Executive Director for Bosnia and Herzegovina

April 23, 2020

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Bosnia and Herzegovina: Request for Purchase Under the Rapid Financing Instrument-Press Release; Staff Report; and Statement by the Executive Director for Bosnia and Herzegovina, (USA: International Monetary Fund, 2020) accessed November 20, 2024

Summary

This paper presents Bosnia and Herzegovina’s Request for Purchase Under the Rapid Financing Instrument (RFI). RFI is expected to help provide support for scaling up priority spending on health and social assistance, while preserving debt sustainability. Preserving the currency board arrangement and raising the resilience of the banking system play a crucial role for restoring external and internal balances. High frequency monitoring of the banks, including their liquidity positions and asset quality, is crucial at this juncture. Economic activity is tentatively projected to decline by 5 percent in 2020 on account of a pronounced fall in exports and remittances and reduced domestic demand and supply. High political uncertainties pose additional downside risks. Despite a recent easing of political tensions, the complexity of the political environment is a downside risk, which could lead to policy slippage and weakened response measures. The IMF staff supports the authorities’ request for a purchase under the RFI considering the urgent nature of the external financing needs caused by the coronavirus disease 2019 crisis.

Subject: Banking, COVID-19, Economic and financial statistics, External debt, Financial institutions, Government finance statistics, Health, International reserves, Loans, Public debt

Keywords: Bank depositor, BiH authorities, Bosnia-Herzegovina, COVID-19, CR, Donor support, Emergency financing request, Executive Board discussion, Global, Government finance statistics, IMF lending tracker, ISCR, Loans, SDR

Publication Details

Pages:

39
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2020/126
Stock No:

1BIHEA2020002
ISBN:

9781513541754
ISSN:

1934-7685

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