SARAJEVO, Dec 6 (Reuters) - Bosnia’s parliament approved the 2013 budget late on Thursday to meet a Friday deadine set by the International Monetary Fund (IMF) for the release of new funds by the year-end.
Spending of 1.74 billion Bosnian marka ($1.16 billion)includes almost 790 million marka for servicing foreign debt, double this year’s total.
Bosnia has a 405-million-euro ($529.25 million) standby arrangement with the IMF, and its next tranche of 60 million euros was conditional on the country’s central and regional parliaments adopting 2013 budgets.
Bosnia has already drawn down some 60 million euros under the loan.
The country’s two autonomous regions, the Serb Republic and the Bosniak-Croat Federation, passed their respective budgets on Tuesday.
The IMF wants the consolidated budget deficit, including regional and central budgets, to be no more than 2.5 percent of gross domestic product. But it was not immediately clear if that target would be met.
The IMF sees Bosnia’s economy contracting 0.7 percent this year and growing 0.5 percent in 2013.