We are deeply disappointed with a failure of the Federation of Bosnia and Herzegovina Parliament to address the draft law on privileged pensions today. It is of utmost importance for such a law to be in line with IMF requirements. BiH is spending large sums of money on social and veteran benefits within a very fragmented legal framework.   

Coverage of veteran-related benefits is higher than civilian benefits. Overall, the distribution of social protection benefits is regressive. This could represent a serious threat to the fiscal sustainability of the country, and most notably of the Federation if not properly addressed via a coherent reform programme.

We remain deeply concerned and expect BiH policy-makers to focus on efforts that will lead to design and implement coherent and consistent economic and social reforms, promote economic growth and development, create a positive climate for business, and enhance citizens’ welfare.