The Executive Board of the International Monetary Fund (IMF) completed the third review under a two-year Stand-By Arrangement (SBA) with Bosnia and Herzegovina (BiH) on a lapse-of-time basis.¹ The completion of the review enables the disbursement of an amount equivalent to SDR 33.82 million (about €38.9 million), which will bring total disbursements under the arrangement to SDR 169.1 million (about €194.4 million).

The economy is showing tentative signs of recovery and modest growth of 0.5 percent continues to be projected for 2013. External and domestic risks to the growth outlook, however, while reduced, remain substantial.

The SBA remains on track. All end-March 2013 performance criteria (PCs) were met, although data to assess the criterion on the non-accumulation of domestic arrears by the general governments of the Federation of Bosnia and Herzegovina and the Republika Srpska are not yet available, due to delays in reporting by lower levels of government. In light of this difficulty and the fact that there is no indication that this PC was not met, the Executive Board approved a waiver of applicability of this PC. Continued progress was also made in implementing structural reforms aimed at strengthening public financial management and tax administration, and safeguarding financial sector stability.

The SBA with BiH was approved on September 26, 2012 (see Press Release No. 12/366) in an amount equivalent to SDR 338.2 million (about €388.9 million, or US$508.6 million).

¹ The Executive Board takes decisions under its lapse-of-time procedures when it is agreed by the Board that a proposal can be considered without convening formal discussions.