EU Delegation: BiH risks losing EU assistance if the blockade of the institutions continues

According to them, in the coming months, the European Union will assess the fulfillment of the conditions set for the payment of the second and last tranche of macro-financial assistance.

"These conditions are specified in the Memorandum of Understanding between BiH and the European Commission, and include policy measures in the areas of economic governance and institution building, financial sector stability, transparency and fight against corruption, and better functioning of the labor market," it was stated in the response. 

Yesterday, the media announced that the European Union would postpone the payment of the second tranche of financial assistance to BiH in the amount of 125 million euros because the BiH authorities have not fulfilled the obligations they accepted when the agreement on payment of the Covid assistance in the amount of 250 million euros was signed.

The agreement was signed in December 2020, and BiH received the first tranche in October last year because the institutions in BiH ratified the agreement with the European Union only in July.

Once these funds became operational, the conditions for obtaining the second tranche were to be met, and the loan in question was on favorable terms.

However, the blockade of state institutions is still ongoing and has lasted for almost six months since former High Representative to BiH Valentin Inzko imposed amendments to the Criminal Code banning genocide denial and glorification of war criminals.

Since then, representatives of the BiH entity of Republika Srpska have refused to participate in the work of the state institutions, which has caused one of the worst political crises in BiH since the signing of the Dayton Peace Agreement.

Among other things, the year ended without the adopted state budget, functioning only on decisions on interim financing.

(FENA) S. R.

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