IMF CLOSES OFFICE IN BOSNIA

SARAJEVO, Bosnia (June 11,2008) - As a part of its administration downsizing, the International Monetary Fund (IMF), will close its office in Bosnia, the Governor of the Bosnian Central Bank Kemal Kozaric said today.

In an interview for Bosnian daily Dnevni Avaz published today, the Bosnian Central Bank Governor said the IMF has decided to downsize its presence in Bosnia since it had neither its regular “Stand-By” arrangement nor any other “firm relations” with the Bosnian government for several years now.

Governor Kozaric stressed that IMF will maintain regular support and cooperation with Bosnia.

The IMF and the World Bank are the two leading international financial institutions charged with assisting poor and middle-income countries worldwide. The IMF’s role is focused on supporting fiscal stability in its target countries through its credit lines called Stand-by arrangements.

Despite repeated IMF warnings, the Bosnian state and entity governments have failed to curb their excessive public spending, which was the main reason why the country was not able to negotiate a new Stand-By arrangement with the IMF for the past four years.

In today’s interview Governor Kozaric stressed that the IMF, as well as Bosnian experts, remain concerned over continued excessive public spending in Bosnia as well as by growing inflation caused by galloping global prices of food and fuel.
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