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Bevanda says IMF loan won't yield results without austerity

Autor: half
SARAJEVO, Sept 28 (Hina) - The financial support of EUR 400 million which the International Monetary Fund has approved for Bosnia and Herzegovina is important for stabilising the situation but there can be no serious results without drastic austerity measures so as to make sure that the money is used to stimulate the economy, Bosnian Council of Ministers Chairman Vjekoslav Bevanda said on Friday.

The IMF Steering Committee yesterday approved a new stand-by arrangement with Bosnia worth EUR 400 million, aside from which Bosnia can also use the EUR 100 million approved by the European Commission two years ago but which was frozen until now because of a reform standstill.

Bevanda told Sarajevo's Dnevni Avaz that Bosnia would certainly get the first tranche of EUR 65.4 million but that if it failed to comply with commitments, the arrangement would be suspended again.

He said the IMF would insist on structural reforms. "Everyone must face up to the facts and make drastic cuts, primarily in administration, and free up the money for the real sector."

Commenting on the statement by European Union Special Representative Peter Sorensen that Bosnia would join the EU in 2020, Bevanda said all the responsibility was on the country's government. Its primary job is to ensure the implementation of constitutional reforms to eliminate the discrimination against ethnic minorities in elections.

(Hina) ha

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