This assignment will deal with role and influence of International Monetary Fund (IMF) in Bosnia and Herzegovina. Assignment will start with short introduction to IMF, what it is and what purpose does it have, and be continued by influence of this organization in Bosnia and Herzegovina.
Primary purpose of the International Monetary Fund, also known as IMF is to ensure stability of the international monetary system. This system is essential for promotion of sustainable economic growth, improving living standards and reduction of poverty. Five main objectives of IMF are :
- To promote international monetary cooperation,
- Balancing growth and expansion of international trade,
- Promoting exchange stability
- Providing assistance in the establishment of a multilateral system of payments and
- Providing access to resources (with certain guarantees) to members
Membership of Bosnia and Herzegovina in IMF
Idea of membership of Bosnia and Herzegovina in the IMF was inherited from Socialist Federal Republic of Yugoslavia, which was one of the countries that participated in the Bretton Woods conference in 1944 (which was about establishment of new international financial system).
However, in 1992, SFRY fell apart and membership in IMF was declined, too. At the same time, conditions for new states – Croatia, FSYR of Macedonia Slovenia and Bosnia and Herzegovina were applied are according to that, Bosnia received 13, 2% of rights and responsibilities of SFRY. In 1995, while concluding Dayton pact, it was also concluded that Bosnia and Herzegovina fulfilled requirements for the membership of IMF.
So, Bosnia and Herzegovina became a member of IMF in the 14th December 1992, and received about 45 million USD, which was given to help Bosnia recover from war. IMF goal was to help solve political and economic issues, reconstruct of infrastructure and creation of market economy. Representatives of the Bosnia and Herzegovina is decided by Presidency of Bosnia and Herzegovina, and those representatives are Bosnia and Herzegovina Governor and Deputy of the Governor).
Purpose of MMF in Bosnia and Herzegovina
In short, IMF provides financial assistance to Bosnia and Herzegovina though so called “stand-by”...