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Weekly Lists
July 6, 2018 www.intellinews.com I Page 32
bne:Credit
IMF postpones decision on new loan tranche to Bosnia over spending hikes
The International Monetary Fund's executive board postponed at the last minute a meeting on the conclusion of a review of Bosnia & Herzegovina's third loan tranche after the governments of Bosnia's two entities decided to increase spending above the agreed level, Reuters reported.
The deal, which would secure the country cheap fresh cash,
was put on hold in 2017 due to unfulfilled obligations, but it was unfrozen at the end of December and in February Bosnia received the second loan tranche.
In May, the IMF urged the country to speed up reforms, but said that it will disburse the third tranche in the autumn, praising Bosnia’s advancement.
However, at the end of June the board decided to postpone its meeting after the governments of the two entities decided to increase public spending without coordinating this with the fund.
The European Bank for Reconstruction and Development (EBRD) board of directors approved a loan of up to €500mn on July 4 for the construction of the Trans Adriatic Pipeline (TAP), a priority project of the European Union (EU) and the Energy Community.
The 878 kilometre pipeline will start at the Greek-Turkish border, cross Albania and, after passing under the Adriatic Sea, will end in southern Italy. It constitutes the final leg of the Southern Gas Cor- ridor and will transport gas from the Caspian region to Europe.
With an initial annual capacity of 10bn cubic metres – equivalent to the energy consumption of approximately 7mn households in Eu- rope – the pipeline will make a significant contribution to the diver- sification of Europe’s energy supply.
Ukraine's parliament, the Verkhovna Rada, has approved a law in the second reading, which removes some legislative loopholes undermining the rights of creditors.
The same day, the National Bank of Ukraine (NBU) welcomed the motion that was among the priorities of the NBU and the govern- ment for 2018.
According to the NBU, the full-scale resumption of lending is blocked by a number of gaps in the applicable law of Ukraine that are holding back the performance of Ukrainian banking sector.
EBRD board approves up to €500mn loan for Trans Adriatic Pipeline
Ukraine’s parliament greenlights law improving creditor protections