Bosnia and Herzegovina: Second and Third Reviews Under the Stand-By Arrangement

Author: International Monetary Fund

Volume/Issue: Volume 2003 Issue 204

Publication date: July 2003

ISBN: 9781451804843

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Topics covered in this book

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Banks and Banking , Exports and Imports , Money and Monetary Policy , Public Finance , ISCR , CR , RS government , authority , authorities of Bosnia and Herzegovina , Bosnia-Herzegovina , reform effort , State Court of BiH , expenditure ceiling , BIH authorities , Arrears , Budget planning and preparation , Debt service

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Summary

Activity and fiscal policy continue to exceed expectations, but strong bank credit growth has fuelled a sharp increase in the current account deficit. In this context, the new administrations recognize the need to establish the macroeconomic stability quickly. These actions are supported by strengthened bank regulations. The new administrations recognize the need for sweeping structural reforms if their aspirations to eventual EU membership and sustained growth are to be realized. But with unemployment high and with large aid inflows set to decline further, risks remain.