SARAJEVO, August 24 (FENA) – The International Monetary Fund (IMF) has remitted funds to the account of the Central Bank of Bosnia and Herzegovina (CBBH) on Monday evening, based on the allocation of special drawing rights (SDR) in the amount of 254,182,273 .00 SDR.
In accordance with the existing laws and bylaws, the CBBH, as the fiscal agent of Bosnia and Herzegovina, for the allocated funds, will approve the equivalent in the amount of 602,540,349.06 KM to the deposit account for IMF transactions – the main account of the Ministry of Finance and Treasury of BiH.
The Central Bank of Bosnia and Herzegovina will distribute funds on the basis of appropriate instructions from the Ministry of Finance and Treasury of BiH, as the account holder, stated the CBBH.
The Central Bank of BiH reminds that the IMF has the authority to create unconditional liquidity through the general distribution (allocation) of SDRs to member countries in proportion to their share in the IMF capital, i.e. the quotas.
Bosnia and Herzegovina’s IMF quota is 0.06 percent. The previous distribution of SDRs for BiH was made in 2009 and arose as a measure to mitigate the effects of the global financial and economic crisis.
The largest allocation of Special Drawing Rights (SDRs) in history—about US$650 billion— has comes into effect yesterday. The allocation is a significant shot in the arm for the world and, if used wisely, a unique opportunity to combat this unprecedented crisis.
The SDR allocation will provide additional liquidity to the global economic system – supplementing countries’ foreign exchange reserves and reducing their reliance on more expensive domestic or external debt. Countries can use the space provided by the SDR allocation to support their economies and step up their fight against the crisis.