Federation prime minister Fadil Novalic and BiH Council of Ministers chair Denis Zvizdic continue to refuse to sign a final agreement on a long-awaited loan from the IMF. The budgets of both entities depend on the IMF funds. Novalic and Zvizdic say that they will not finalize the agreement so long as Republika Srpska fails to approve changes made to the EU-BiH Stabilization and Association Agreement.
Republika Srpska prime minister Zeljka Cvijanovic has criticized her counterparts for their decision, but her government insists that RS will be able to make up for the shortfall in other ways.
The Finance Ministry of Republika Srpska told BIRN that the entity still hopes Novalic and Zvizdic put pen to paper by September, while in the meantime the RS will maintain liquidity by issuing bonds on the domestic market.
