By adopting its Global Fiscal Framework, BiH received the key that opened the door to 50 million EUR – the first part of the loan obtained from the EU intended to aid budgets in this country. It will be up to the authorities on the state and entity levels to decide whether they direct the ‘steering wheel’ in the direction of economic growth and achieve greater speed on the road to European integration.

Should these funds be allocated in the right way, BiH citizens should benefit the most. The EU is ready to financially help the BiH economy to become more competitive and full of opportunities for investors that will create new jobs, and, in that way, a better living standard for all its citizens.

This assistance will supplement the country’s already agreed programme with the IMF for the continuation of the Stand-By Arrangement from September 2012. If BiH keeps on working, making more reforms and fulfilling additional requirements, it will get the second part of the planned 100 million macro-financial assistance from the EU. The decision on the amount of grant was made in 2009, but not made available until the required conditions were met. The disbursement of the first instalment of 50 million EUR was conditioned on the approval of the Global Framework of Fiscal Policies by the Fiscal Council and the tendering of the common Government Budget Management Information System. BiH has complied with these conditions.
The institutions of BiH will be required to meet eight additional conditions for structural reform for the payment of the second part of the loan of 50 million EUR.

Through financial aid programmes to assist non-Member States, the EU gives access to credit and financial resources that will facilitate the path to reform. The funds are paid to the Central Bank of the beneficiary country, while the decision on how the funds will be spent is down to the country and its sense of responsibility towards its citizens.