Bosnia and Herzegovina will not receive the fourth instalment under the stand-by arrangement with the International Monetary Fund until the law on the pensions of former soldiers and police officers in the Federation entity goes into force, Council of Ministers Chairman Vjekoslav Bevanda said on Tuesday.
The IMF is satisfied with how Bosnia is meeting its commitments but insists on the enforcement of the law which both houses of the Federation parliament passed in April, Bevanda told reporters after a session of the Bosnian Fiscal Council, which coordinates the implementation of the financial policy between the state and its two entities.
It remains unknown when the law could go into force because it has not been signed by Federation President Zivko Budimir. He is currently in custody on suspicion of corruption and the State Prosecutor's Office and the State Court have turned down his associates' proposal that he sign it in custody. Under the Federation's Constitution, only the entity president can sign laws. Also, the State Prosecutor's Office today requested that he be remanded in custody for another two months.
"No member on the Fiscal Council can have influence on that," Bevanda said, adding that they were trying to assure the IMF of that. He put all the blame on the Federation authorities.
Bosnia needs the IMF loan to plug its budget hole. The IMF approved a new, two-year stand-by deal worth EUR 405.3 million last September. So far three instalments have been paid totalling just under half the deal's amount.
