IMF Mission and FBiH officials agree on importance of state property resolution for investment cycle

Prime Minister Niksic presented the main financial indicators to the IMF Mission representatives. Among other issues, they discussed the implications of global developments on the domestic economy, noting that even much larger countries in the world have felt the consequences of the conflict in the Middle East, and that it is expected that these effects have also impacted the economy of Bosnia and Herzegovina.

In this context, the FBiH Prime Minister stressed that the Government of the Federation of BiH has undertaken a series of measures in the past period aimed at protecting the standard of living of citizens, particularly pensioners and the most vulnerable groups.

He stated that some of the measures introduced to protect citizens from inflationary pressures include limiting the price of bread, freezing the lowest prices of 100 products, as well as capping retail and wholesale margins on oil and petroleum products.

Among the measures adopted by the Government of the Federation of BiH to strengthen competitiveness, preserve jobs and protect workers are an increase in the minimum wage, as well as enabling employers to pay non-taxable one-time assistance to employees.

Support to the economy was also provided through a reduction in the overall contribution rate, as well as various incentives. It was noted that despite global developments, revenue growth has been recorded in the first five months of this year, and that this trend is expected to continue thanks to transaction fiscalisation.

The IMF Mission representatives informed Prime Minister Niksic about expected financial trends in the coming period in the context of global developments and the challenges they bring.

They also discussed reform measures and the benefits that would result from the adoption of the Growth Plan. Another key topic was the issue of state property.

The interlocutors agreed that resolving this important issue would lead to a major investment cycle from which all citizens of Bosnia and Herzegovina would benefit significantly.