prijava
SARAJEVO, July 28 (FENA) - The IMF Resident Representative for Bosnia and Herzegovina Andrew Jewell, the International Monetary Fund (IMF) Resident Representative in Bosnia and Herzegovina, issued a statement in Sarajevo today stating that the IMF strongly opposes any effort by the FBiH Parliament to mandate the conversion of loans linked to the Swiss franc (CHF) into KM.
“It is not the role of the parliament to modify contracts concluded by private sector agents. Such action, especially when applied retroactively, would introduce legal uncertainty and disrupt the functioning of the credit market in BiH at the worst possible time, when banks and their borrowers are coping with the coronavirus crisis
While we recognize that many borrowers are struggling to service their debts, the appropriate way to address these difficulties is through the loan moratorium scheme that the FBiH Banking Agency put in place,” said Jewell.
He added that imposing mandatory conversion could also trigger legal action from the banks, with potential consequences for the FBiH budget.
“Under BiH’s previous Extended Fund Facility (EFF) with the IMF, the authorities committed not to impose the mandatory conversion of any foreign currency-denominated loan into local currency. We expect the authorities to continue to honor this commitment, particularly given their stated desire for a successor arrangement to the EFF,” underlined Jewell.
(FENA) S. R.
