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BiH Fiscal Council seeks financial support from the IMF

Press release , Photo/BiH Council of Ministers

SARAJEVO, April 1 (FENA) - The Fiscal Council of Bosnia and Herzegovina today adopted the Letter of Intent with the International Monetary Fund (IMF) with which BiH is seeking financial support under the Rapid Financing Instrument as part of efforts to curb the spread of coronavirus.

At a session convened by BiH Council of Ministers Chairman Zoran Tegeltija, it was noted that BiH's fiscal position was significantly improved during the previous arrangement with the IMF, which allowed some fiscal space to cover the economic cost of the pandemic so far, and the surplus in the last two years has averaged close to two percent of gross domestic product.

The fiscal position is expected to be deficit this year, due to a significant decrease in budget revenues, much higher spending on health care, and additional social and economic support from the budget due to the effects of the coronavirus pandemic.

IMF funds will be used to increase health care needs and finance economic stabilization measures, and the Rapid Financing Instrument is expected to act as a catalyst to support other international financial institutions.

In addition to the Letter of Intent, the Fiscal Council of BiH adopted the 2019 Budget Execution Report and the Fiscal Council of BiH Budget Proposal for 2020, the press service of the BiH Council of Ministers announced.