SARAJEVO (Bosnia and Herzegovina), September 28 (SeeNews) – Bosnia's state-level finance ministry has said that the 2017 budget for the country's institutions will be adopted by the end of this year, in line with statutory terms and deadlines set by the International Monetary Fund (IMF).
The budget will be sent to parliament for approval as early as next month, the finance ministry said in a statement on Tuesday, following a meeting between minister Vjekoslav Bevanda and the IMF mission chief for Bosnia, Nadeem Ilahi.
Bevanda said that budget spending will remain at the 2016 level, according to the statement.
He added that employment in state institutions will be limited by law, while a decision to maintain the base salary and bonuses for 2017 at this year's level has already been adopted.
Bosnia has also taken steps in managing its public debt and has, for the first time, adopted a strategy to deal with this issue in cooperation with the country's two entities, the Serb Republic and the Muslim-Croat Federation. The two parts have separate budgets, while the state-level government and institutions have their own budget.
Earlier this month, the IMF approved a three-year 553.3 million euro ($623.2 million) loan to Bosnia and Herzegovina to support the country’s economic reform agenda.
The IMF agreed in May to lend Bosnia 550 million euro ($616.5 milion) under a three-year programme that requires the country to cut public debt, improve business climate, and secure financial sector stability. However, delays occurred after Bosnian politicians failed to meet the requirements.
The programme was designed to replace a $720 million stand-by arrangement which expired in June 2015, after the lender froze the disbursement of new loan installments because the country had failed to implement needed reforms.
($=0.892190 euro)