Bosnian MP Semsudin Mehmedovic said he would like the IMF’s tranche to Bosnia not to be paid, following some announcements that this financial institution could stop the payment of the BAM 150 million (around EUR 75 million) after the Federation of Bosnia and Herzegovina entity Government adopted the Draft Law on the Rights of Veterans and their

The Draft Law was adopted following the pressure from the veterans of the Army of the Republic of Bosnia and Herzegovina and the Croat Defence Council who protested in front of the FBiH Government building and across the country on several occasions in the past year.

The new law requires additional BAM 14 million (around EUR 7 million) from the FBiH budget, but one of the International Monetary Fund’s (IMF) conditions was that the FBiH budget has no additional expenditures, in order to stabilise spending and provide for safe loan return to the IMF.

“Honestly, I would like the arrangement to finally stop because the governments in Bosnia would finally be forced to take a completely different approach to the financial stabilisation of the country, Mehmedovic said. “Constantly relying on some loans is not good for the country and the citizens who will have to return those loans. It would be more realistic if we would start relying on our own capacities and it is something our citizens expect from the government.”

The IMF had been warning Bosnia’s authorities that veterans’ benefits should not be increased, but the recent legislation increases the budget expense by BAM 14 million. The FBiH Government confirmed to N1 there will soon be a meeting between their representatives and those of the IMF where the new development will be discussed.  

(EUR 1 = BAM 1.95583)