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Bosnia and IMF preparing talks on new standby arrangement

Autor: vmic
SARAJEVO, April 11 (Hina) - Bosnia and Herzegovina's authorities and the International Monetary Fund (IMF) are making preparations for talks on a new standby arrangement for the country, said the IMF's resident representative in Sarajevo, Milan Cuc.

"We hope that the second half of May may serve as a time frame for the next annual mission of the IMF that will conduct consultations on the economic situation in the country and for the start of talks on a possible new programme for Bosnia and Herzegovina," Cuc said as quoted by the Dnevni Avaz newspaper of Wednesday.

Cuc did not specify conditions under which the IMF might approve a new standby arrangement for Bosnia and Herzegovina, and the newspaper said that the authorities needed it to patch up the existing holes in the budgets of the country's two entities.

A further problem was a recent downgrade of Bosnia and Herzegovina's sovereign rating by Moody's agency, which put it only a notch above countries that are treated as bankrupt.

Cuc said that the credit rating downgrade was partly prompted by the political crisis in the country as a result of which no budget for this year has been adopted yet and the country has been operating on an interim budget.

(Hina) vm

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