The International Monetary Fund (IMF) credited funds to the account of the Central Bank of Bosnia and Herzegovina (CBBH), based on the allocation of Special Drawing Rights (SDR) in the amount of SDR 254,182,273.00, the CBBH announced.
In accordance with applicable laws and regulations, CBBH, as the fiscal agent of Bosnia and Herzegovina, for the allocated funds will credit with the respective amount of BAM 602,540,349.06 the deposit account for IMF transactions – the main account of the BiH Ministry of Finance and the Treasury.
The Central Bank of Bosnia and Herzegovina will distribute funds according to appropriate instructions from the BiH Ministry of Finance and Treasury, owning the account.
The IMF has the authority to create unconditional liquidity through the overall distribution of SDRs in member countries in proportion to their share of the IMF capital, ie quotas. Bosnia and Herzegovina’s quota in the IMF is 0.06%. The previous distribution of SDRs to BiH took place in 2009 and was carried out as a measure to mitigate the effects of the global financial and economic crisis.
In response to the recent crisis caused by the COVID-19 pandemic, the IMF Board of Governors decided, on August 2, 2021, a new SDR allocation of approximately SDR 456 billion, equivalent to approximately US $ 650 billion, i which was credited to IMF member countries, in SDR currency, in their SDR accounts with the IMF, with quotas set for each country.
SDR allocation is not a classic country loan agreement with the IMF. The liability under this allocation consists of monthly calculated costs over the cumulative amount of SDR allocation, which are paid quarterly to the IMF (February, May, August and November). The fee consists of the interest rate for SDR, increased by 1 basis point (0.01) for the IMF service fee. The obligation to pay the fee is borne by the levels in BiH to which the appropriate amount of funds is allocated according to the principle of distribution.