Press Release No. 03/231

Press Release: IMF Approves Two-Month Extension of Stand-By Arrangement with Bosnia and Herzegovina

December 31, 2003

The Executive Board of the International Monetary Fund (IMF) today approved the extension of the Stand-By Arrangement for Bosnia and Herzegovina by two months to February 29, 2004. Bosnia and Herzegovina requested the extension to carry out prior actions on budgetary transfers to the State and on parliamentary approval of the 2004 budget in the Republika Srpska in connection with the fourth review under the Stand-By Arrangement.

The Stand-By Arrangement, which was approved on August 2, 2002 (see Press Release No. 02/35), totals SDR 67.6 million (about US$100 million). So far, Bosnia and Herzegovina has drawn SDR 55.6 million (about US$82 million) under the arrangement. The arrangement had been due to expire on November 1, 2003, but in early October was extended to December 31, 2003 (see Press Release No. 03/164).