After conducting a two-week survey of the economic situation in BiH, representatives of the IMF expressed “mild optimism,” according to local press. Though IMF payments have been halted since last fall due to the slow pace of reforms within BiH, the Fund seems ready to negotiate a new arrangement if reforms resume. Progress on the Stabilization and Association Agreement between BiH and the EU is seen as crucial to any new deal.
Since the current SBA with Bosnia expires at the end of June, the IMF, the European Union and the World Bank will be work to prepare a new loan arrangement, which Bosnia desperately needs to cover a growing budget deficit.
Continued financial support is one of the key elements of EU’s new approach towards Bosnia, which is focusing on improving the economic and social base of the country rather than on reforming constitutional arrangements.
This will be underlined through the Stabilisation and Association Agreement, SAA, which will become effective as of June.
