Bosnia Unlocks $1.1b of IMF, EU Funds

Bosnia’s national parliament passed a long-delayed law on Friday that should unlock about €1 billion ($1.18 billion) of funding from the International Monetary Fund, the EU and other international lenders. The law raising road-toll fees and excise taxes on bio-fuel was passed by 22 votes to 20 by the 42-seat parliament, Reuters reported. Opposition parties voted against, saying it would raise other costs for citizens. They had blocked a previous draft law last year that would have increased excise taxes on fuel to pay for road-building, demanding more transparency in the allocation of monies raised so that the government could not channel them into general budget spending. Addressing the opposition concerns, the government made changes to the legislation lifting road-toll fees and excise taxes just on bio-fuel and bio-liquid, and clarifying that proceeds will be used exclusively for road construction. EU Enlargement Commissioner Johannes Hahn praised the adoption of the law in a tweet as a “critical step to secure infrastructure investment and international aid.”