IMF CONCERNED ABOUT INCREASED PUBLIC SPENDING IN BOSNIA

SARAJEVO, Bosnia (June 9,2008) - The Bosnian Finance Minister Dragan Vrankic talked to the International Monetary Fund’s Managing Director Dominique Strauss-Kahn in Amsterdam on June 7, about the current economic trends, macroeconomic and fiscal projections for the following period, Bosnia’s progress in the EU association process and the Stabilisation and Association Agreement (SAA) between Bosnia and EU.

Minister Vrankic was invited to participate in the annual meeting of the IMF and the World Bank.

The IMF officials expressed concern about increasing pressure to up Bosnia’s public spending. Key challenges ahead of the Bosnian government include fighting inflation and growth of the current account deficit, along with a final solution for the problem of internal debt.
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