The International Monetary Fund will disburse 39 million euros ($51 million) to Bosnia-Herzegovina, as part of a stand-by loan program to help the country overhaul its economy and stabilize public finances.
The second tranche under the $509 million-euro arrangement brings lending to the former Yugoslav republic to almost 156 million euros, the Washington-based lender said in an e-mailed statement. The Fund approved “reforms of war-related benefit programs,” reduction of health-care costs and administration cuts.
The IMF urged the government to keep spending tight this year to ensure fiscal consolidation, according to the statement. Some slippage on revenue targets was possible “in the event of weaker-than-expected growth,” the IMF said.
Bosnia needs to boost competitiveness and create jobs in order to unlock its growth potential, the IMF said.