July 3 (SeeNews) - Bosnia and Herzegovina has received the green light for a loan from a foreign commercial bank for an amount equal to the tranche from the International Monetary Fund (IMF) the country missed out on, but with more favourable terms and a lower interest rate, local media reported.
The name of the bank cannot be disclosed, but the funds the country needs to get back on its feet after the last IMF tranche was lost are available and ready to be transferred, broadcaster BHRT reported on Thursday, quoting the prime minister of Bosnia’s Muslim-Croat Federation entity, Fadil Novalic.
Following a sitting of the Federation’s economic and social council on Wednesday, Novalic said that all hope has been lost regarding the realisation of the conditions the IMF imposed.
Earlier this week, the government of Bosnia’s Serb Republic also announced it was time to seek financing from other sources because Bosnia is too far from a new agreement with the IMF.
In January, the IMF decided to postpone the disbursement of a new loan installment under the stand-by arrangement with Bosnia because the country failed to implement needed reforms.
A mission of the IMF visited Bosnia last month, following which it concluded that that Bosnian authorities need more time to work out the details of policies in a number of areas.
The Serb Republic and the Muslim-Croat Federation are two autonomous entities that form Bosnia and Herzegovina.