Bosnia’s Council of Ministers adopted the Proposal for a loan agreement between BiH and the International Bank for Reconstruction and Development, with the Basis for its conclusion.

The main goal of the program is to support the financing of the development policy (DPF1) of the health sector in the amount of €92.3 million, as a key part of the overall reform program for the long-term financial sustainability of Bosnia’s health system and the improvement of the quality of health services and health outcomes.

Loan funds will be allocated to the Federation (FBiH) entity in the amount of €55,380,000.00 and Republika Srpska (RS) entity €36,920,000.00. The loan repayment term is 18 years, including a five-year grace period.

The BiH government also decided to approve one million Bosnian marks (some €500,000) from the current reserve of the state budget and international obligations of BiH for the year 2023 to remedy the consequences of floods across the country. According to the decision, 500,000 marks (some €250,000) are approved for the most threatened municipalities and cities in the FBiH and RS.

The distribution of funds will be determined later, by another decision, in accordance with the degree of threat and priorities that will be determined by the Ministry of Security of BiH in cooperation with the competent entity institutions.