International Monetary Fund
The IMF's primary purpose is to ensure the stability of the international monetary system. This system is essential for promoting sustainable economic growth, increasing living standards, and reducing poverty. The Fund’s five goals are to promote international monetary co-operation; to facilitate the expansion and balanced growth of international trade; to promote exchange stability; to assist in the establishment of a multilateral system of payments; and to make resources available (with adequate safeguards) to members experiencing balance of payments difficulties.
IMF Presence in Bosnia and Herzegovina
Bosnia and Herzegovina became a member of the IMF on 14th December, 1992. On 20th December, 1995, the country drew the equivalent of SDR 30.3 million (about US$ 45 million) under the IMF’s emergency post-conflict assistance to address the challenges of political and economic reintegration, the rebuilding of infrastructure, and the creation of the basis for a market economy. On 29th May, 1998, the Executive Board approved a stand-by arrangement in the amount of SDR 60.6 million (50% of quota), augmented on 28th June, 1999 to SDR 77.51 million and further augmented on 31st March, 2000 to SDR 94.41 million. On 2nd August, 2002 the Executive Board approved the second stand-by arrangement of SDR 67.60 million.
BiH’s IMF quota is SDR 169.1 million (about US$ 213.5 million) or 0.07% of the total quota, and its voting power in the IMF is 2,432 votes or 0.010% of total. BiH‘s currency, the convertible mark (KM), is pegged to the Euro at 1 KM per 0,51129 EUR by the Currency Board.
The IMF in BiH provides financial assistance through stand-by arrangements and also through the provision of technical assistance in a number of areas, such as the establishment of a new central bank and new clearing system, banking supervision, the development of a fiscal structure in the Federation, the reform of tax administration, VAT design, the development of treasuries and the improvement of public expenditure management, the improvement of monetary statistics, and the development of a statistical base and the provision of statistical advisors.