Bosnia decides to launch talks with IMF on new funding deal

An IMF mission is expected to arrive to Bosnia for the purpose in October, Tegeltija said in a statement on Wednesday, after meeting with Fadil Novalic and Radovan Viskovic, the prime ministers of Bosnia's two autonomous entities - the Federation and the Serb Republic, respectively.

Tegeltija noted that the Bosnian authorities expect to agree a deal with the IMF within two months after the arrival of the Fund's mission.

The new funding will primarily go to help offset the impact of the Covid-19 crisis and to support a new investment cycle, he added.

In April, the IMF said its turning its attention to negotiating a new, multiyear funding arrangement with the Bosnian authorities, following the approval of 333 million euro ($394 million) in emergency assistance to the country in the context of the coronavirus pandemic.

In September 2016, the IMF approved a three-year, 553.3 million euro loan under a Extended Fund Facility (EFF) to support Bosnia's economic reform agenda. However, its implementation had been blocked after Bosnia failed to form a new government and state institutions more than year following the October 2018 general elections. The country's new government was eventually voted in office in December 2019, pledging to unblock the IMF deal.

($=0.8448 euro)