IMF allocates SDR worth EUR 308 mln to Bosnia
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The International Monetary Fund has allocated 254 million special drawing rights (SDRs) worth BAM 602.5 million (EUR 308 million) to Bosnia and Herzegovina, the country's central bank said on Tuesday as cited by news portal SeeNews.
In response to the latest crisis caused by the COVID-19 pandemic, the IMF board of governors decided on August 2 on a new SDR allocation of 456 billion SDRs, an equivalent to USD 650 billion, which was credited to IMF member countries, in SDR currency, to their SDR holdings accounts with the IMF, at certain quotas for each country.
The previous distribution of SDRs for Bosnia and Herzegovina was in 2009 in order to mitigate the effects of the global financial and economic crisis. The SDR allocation is not a classic credit arrangement of a country with the IMF.
The liability under this allocation consists of monthly calculated costs on the cumulative amount of SDR allocation, which are paid quarterly to the IMF. The fee consist s of the interest rate for the SDR, increased by one basis point (0.01) for the IMF service fee. The obligation to pay the fee is on the institutions in the country, to which funds will be allocated according to the distribution principle.
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