{ "title": "IMF Survey: Bosnia and Herzegovina Gets €405 Million Loan from the IMF", "publication": "IMF News, October 5, 2012", "sourceUrl": "https://www.imf.org/en/news/articles/2015/09/28/04/53/soint100512a", "canonical": "https://www.imf.org/en/news/articles/2015/09/28/04/53/soint100512a", "overlayPath": "/en/news/articles/2015/09/28/04/53/soint100512a/index.md", "summary": "The IMF's Executive Board approved on September 26 a 24-month €405 million Stand-By Arrangement for Bosnia and Herzegovina. The program will help create the conditions for a sustained economic recovery amidst the difficult economic environment, the IMF said.", "authors": [ "Arrangements EMERGING EUROPE" ], "publishDate": "2012-10-05", "sections": [ { "heading": "Program approval and objectives", "content": "- IMF’s Executive Board approved on September 26 a 24-month €405 million Stand-By Arrangement for Bosnia and Herzegovina.\n- Program aims:\n - Counter the effects of the euro area crisis on Bosnia and Herzegovina.\n - Address structural challenges facing the country.\n- Four-pronged approach:\n - Improve national policy coordination across multiple government levels.\n - Maintain fiscal discipline while advancing structural fiscal reforms, including reducing current expenditure, allowing more space for capital spending, and making social spending more targeted.\n - Safeguard financial stability within the context of the currency board (introduced in 1997) by improving crisis preparedness, banking supervision, and resolution frameworks.\n - Intensify reforms to improve the business environment to support growth, investment, and job creation." }, { "heading": "Economic outlook and risks", "content": "- Growth and inflation projections:\n - Expect economic growth to start recovering in 2013 after stagnation in 2012.\n - Project modest growth of about 1 percent in the next year, with inflation remaining low.\n- Domestic demand constraints:\n - High unemployment, fiscal restraint, and slow credit growth expected to keep domestic demand subdued.\n- External risks:\n - Majority of risks tilted to the downside, primarily from a possible intensification of the euro area crisis.\n - Channels of transmission include exports, remittances, capital inflows, and foreign banks’ reliance on parent-bank funding and exposure to loss of confidence in home countries." }, { "heading": "IMF engagement and recent program history", "content": "- Membership and early assistance:\n - Bosnia and Herzegovina became a member on December 20, 1995; on that same day the Fund approved financial support under a new policy on emergency assistance for post-conflict countries.\n- Recent programs:\n - Last IMF-supported program was a three-year Stand-By Arrangement approved in July 2009; last review completed in October 2010.\n - Political delays prevented completion of further reviews until after a new Council of Ministers was confirmed by Parliament in March of the stated year.\n - Staff-level agreement reached in July; Executive Board approved the new two-year Stand-By Arrangement on September 26.\n- Additional support:\n - Beyond financial support, the country has benefited from extensive technical assistance and training provided by the IMF." }, { "heading": "Medium-term macroeconomic challenges and policy recommendations", "content": "- Fiscal policy and public spending:\n - The size of government remains very large; focus should be on reducing current public expenditures.\n - Increase capital spending (including on highways) while improving the targeting of social spending.\n- Financial sector resilience:\n - Strengthen contingency planning and crisis preparedness.\n - Improve coordination between the central bank and the banking agencies and enhance cooperation with home supervisors.\n- Structural reforms:\n - Address structural impediments that hamper economic performance to achieve more balanced growth and job creation.\n- Institutional coordination:\n - Improve national policy coordination given the country’s complex governance structure (two Entities and ten cantons with most economic power, and a limited-mandate State government)." }, { "heading": "Key statistics and dates (as reported)", "content": "- Stand-By Arrangement size: €405 million\n- Duration of arrangement: 24-month\n- Expected growth (next year): about 1 percent\n- Currency board introduced: 1997\n- War period causing near-80 percent GDP decline: 1992–95\n- IMF membership date: December 20, 1995\n- Previous Stand-By Arrangement approval: July 2009\n- Last review under previous program: October 2010\n- New program staff-level agreement: July (year as reported)\n- New program Executive Board approval: September 26\n- IMF Survey online publication date: October 5, 2012\n\nIMF Survey: Bosnia and Herzegovina Gets €405 Million Loan from the IMF, October 5, 2012\n\n---\n\n\n References\n\n- https://www.imf.org/en/News/country-focus\n- PRESS CENTER\n- IMF Survey Interview\n- IMF Country Focus\n- Press release\n- Read the report\n- Bosnia and the IMF\n- The IMF and Europe\n- Blog: Crisis, emerging Europe\n- Blog: Banks in Eastern Europe\n- Europe needs action on growth\n- IMF Stand-By Arrangements\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2015/09/28/04/53/soint100512a" } ], "bullets": [ "[Markdown version](/en/news/articles/2015/09/28/04/53/soint100512a/index.md)", "[Structured JSON version](/en/news/articles/2015/09/28/04/53/soint100512a/index.json)", "[Bundle manifest](/en/news/articles/2015/09/28/04/53/soint100512a/bundle-manifest.json)", "Authors: Arrangements EMERGING EUROPE", "Published: October 5, 2012", "IMF’s Executive Board approved on September 26 a 24-month €405 million Stand-By Arrangement for Bosnia and Herzegovina.", "Program aims:", "Four-pronged approach:", "Growth and inflation projections:", "Domestic demand constraints:", "External risks:", "Membership and early assistance:", "Recent programs:", "Additional support:", "Fiscal policy and public spending:", "Financial sector resilience:", "Structural reforms:", "Institutional coordination:", "Stand-By Arrangement size: €405 million", "Duration of arrangement: 24-month", "Expected growth (next year): about 1 percent", "Currency board introduced: 1997", "War period causing near-80 percent GDP decline: 1992–95", "IMF membership date: December 20, 1995", "Previous Stand-By Arrangement approval: July 2009", "Last review under previous program: October 2010", "New program staff-level agreement: July (year as reported)", "New program Executive Board approval: September 26", "IMF Survey online publication date: October 5, 2012", "[https://www.imf.org/en/News/country-focus](https://www.imf.org/en/News/country-focus)", "[PRESS CENTER](http://presscenter.imf.org/)", "[IMF Survey Interview](https://www.imf.org/en/news/search)", "[IMF Country Focus](https://www.imf.org/en/news/country-focus)", "[Press release](https://www.imf.org/external/np/sec/pr/2012/pr12366.htm)", "[Read the report](https://www.imf.org/external/pubs/cat/longres.aspx?sk=40038.0)", "[Bosnia and the IMF](https://www.imf.org/external/country/BIH/index.htm)", "[The IMF and Europe](https://www.imf.org/external/region/eur/index.htm)", "[Blog: Crisis, emerging Europe](http://blog-imfdirect.imf.org/2012/07/27/convergence-crisis-and-capacity-building-in-emerging-europe/)", "[Blog: Banks in Eastern Europe](http://blog-imfdirect.imf.org/2012/06/13/lost-found-in-eastern-europe-replacing-funding-by-western-europes-banks/)", "[Europe needs action on growth](https://www.imf.org/external/pubs/ft/survey/so/2012/POL061812A.htm)", "[IMF Stand-By Arrangements](https://www.imf.org/external/np/exr/facts/sba.htm)", "[https://www.imf.org/en/home](https://www.imf.org/en/home)" ], "alternates": { "markdown": "/en/news/articles/2015/09/28/04/53/soint100512a/index.md", "json": "/en/news/articles/2015/09/28/04/53/soint100512a/index.json", "bundleManifest": "/en/news/articles/2015/09/28/04/53/soint100512a/bundle-manifest.json" }, "generatedAtUtc": "2026-09-27T07:52:35.198Z" }