Bosnia and the International Monetary Fund (IMF) have agreed on the terms for a new $50 million stand by arrangement after year-long negotiations, the Fund said in a statement on Friday. The IMF said it reached agreement with Bosnia's newly-established Fiscal Council on the immediate steps needed to reduce the external current account deficit and build co-ordinating fiscal structures.
"The Stand By Arrangement will build on success in recent years, including 10-fold increase in exports and tripling of GDP in the past decade, stabilisation of inflation, and the strong currency board," the statement said.
The Fund said Bosnia's multiple parliaments needed to adopt a law strengthening the Fiscal Council for the lender's Executive Board to consider the arrangement for Bosnia in October.
In case of delays, the Executive Board will consider the arrangement following the adoption of the proposed 2006 budgets, which normally takes place in December, the statement said.