Identifier
Created
Classification
Origin
09SARAJEVO821
2009-07-09 07:40:00
UNCLASSIFIED
Embassy Sarajevo
Cable title:
BOSNIA: IMF GOVERNING BOARD APPROVES $1.57 B
how-toVZCZCXRO6669 RR RUEHAG RUEHAST RUEHDA RUEHDBU RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA RUEHLN RUEHLZ RUEHNP RUEHPOD RUEHROV RUEHSK RUEHSL RUEHSR RUEHVK RUEHYG DE RUEHVJ #0821 1900740 ZNR UUUUU ZZH R 090740Z JUL 09 FM AMEMBASSY SARAJEVO TO RUEHC/SECSTATE WASHDC 0460 INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE RUEATRS/DEPT OF TREASURY WASHDC
UNCLAS SARAJEVO 000821
SIPDIS
TREASURY FOR SCHMERIN, DEPARTMENT FOR EUR/SCE, EEB/IFD/OMA
(FREUDENWALD)
E.O. 12958: N/A
TAGS: ECON EFIN EAID BK
SUBJECT: BOSNIA: IMF GOVERNING BOARD APPROVES $1.57 B
STANDBY ARRANGEMENT
REF: A. SARAJEVO 589
B. SARAJEVO 666
C. SARAJEVO 744
D. SARAJEVO 782
UNCLAS SARAJEVO 000821
SIPDIS
TREASURY FOR SCHMERIN, DEPARTMENT FOR EUR/SCE, EEB/IFD/OMA
(FREUDENWALD)
E.O. 12958: N/A
TAGS: ECON EFIN EAID BK
SUBJECT: BOSNIA: IMF GOVERNING BOARD APPROVES $1.57 B
STANDBY ARRANGEMENT
REF: A. SARAJEVO 589
B. SARAJEVO 666
C. SARAJEVO 744
D. SARAJEVO 782
1. On July 8, the IMF Governing Board approved a $1.57
billion, 36-month standby arrangement for Bosnia-Herzegovina.
The first tranche of $282 million could arrive as early as
July 10. The funding must be used to service external debt,
but Federation Finance Minister Bevanda has said that this
will free up budget resources to repay commercial debt the
Federation borrowed to plug last year's budget hole. While
the IMF appears to be satisfied for now that the Federation
will be able to control its payments to war vererans and
other social beneficiaries (Ref D),the real test will come
during the first review in the fall. If the IMF does not see
progress, the second tranche of approximately $140 million
could be delayed.
ENGLISH
SIPDIS
TREASURY FOR SCHMERIN, DEPARTMENT FOR EUR/SCE, EEB/IFD/OMA
(FREUDENWALD)
E.O. 12958: N/A
TAGS: ECON EFIN EAID BK
SUBJECT: BOSNIA: IMF GOVERNING BOARD APPROVES $1.57 B
STANDBY ARRANGEMENT
REF: A. SARAJEVO 589
B. SARAJEVO 666
C. SARAJEVO 744
D. SARAJEVO 782
1. On July 8, the IMF Governing Board approved a $1.57
billion, 36-month standby arrangement for Bosnia-Herzegovina.
The first tranche of $282 million could arrive as early as
July 10. The funding must be used to service external debt,
but Federation Finance Minister Bevanda has said that this
will free up budget resources to repay commercial debt the
Federation borrowed to plug last year's budget hole. While
the IMF appears to be satisfied for now that the Federation
will be able to control its payments to war vererans and
other social beneficiaries (Ref D),the real test will come
during the first review in the fall. If the IMF does not see
progress, the second tranche of approximately $140 million
could be delayed.
ENGLISH