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Bosnia to adopt amendments to excise tax laws in H2 2017 - RBA

Bosnia to adopt amendments to excise tax laws in H2 2017 - RBA Bragin Alexey/Shutterstock.com

SARAJEVO (Bosnia and Herzegovina), May 19 (SeeNews) – The Croatian unit of Austria's Raiffeisenbank said on Friday it believes Bosnia will adopt amendments to a set of laws on excise duties in the second half of 2017, after which the International Monetary Fund will release the next loan tranche under its current three-year funding deal with the country.

Judging by the current political perspective, the disbursement of the second tranche worth 76 million euro ($84.8 million) will be ensured for the 2017 budget, Raiffeisenbank Austria d.d. (RBA) said in a weekly CEE report.

On May 10, the House of Representatives of Bosnia's Parliamentary Assembly voted against the adoption of amendments to excise tax laws - a
key requirement of the authorities’ programme supported by the IMF under the Extended Fund Facility (EFF). The IMF then delayed the release of the second loan tranche because of the failure of the authorities to meet an agreed reform target.

It, however, said that the negative political outcome will not automatically bring the agreement with Bosnia to an end. Instead, it announced it will trigger negotiations regarding the new set of measures and the timeframe as well as the disbursement dynamics of the tranches from the initial EFF.

In September last year, the IMF approved a three-year 553.3 million euro loan to Bosnia and Herzegovina to support the country’s economic reform agenda. The disbursement of funds under the loan deal hinges on the implementation of a set of reforms.

($=0.896109 euro)

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