Prime Minister of the Federation of Bosnia and Herzegovina (FBiH) Fadil Novalic informed the International Monetary Fund's (IMF) representatives on Tuesday about the implementation of the reform activities in this semi-autonomous entity of Bosnia and Herzegovina.

Novalic and IMF's Executive Director Anthony De Lannoy exchanged the information ahead of the upcoming review of the arrangement that Bosnia concluded with this international financial institution, scheduled for the end of June.

The IMF's Executive Board approved in September 2016 a three-year extended arrangement under the Extended Fund Facility (EFF) with Bosnia, for an amount of some EUR 550 million to support the country's reform agenda. The Executive Board enabled the immediate disbursement of nearly EUR 80 while the rest is made available in 11 instalments subject to quarterly reviews.

Speaking about the implementation of reform agenda, PM Novalic said the FBiH Government determined proposals of law on contributions and income tax, sending them to parliamentary procedure. According to Novalic, these two laws are crucial in continuation of further reform activities.

The instalments approved by the IMF under the EFF arrangement are first allocated on account of the Central Bank of Bosnia and Herzegovina and then split between Bosnia's two entities, the Federation and the Republika Srpska (RS) – two thirds for the FBiH, one for the RS.