Article 2

The Commission is empowered to agree with the authorities of Bosnia and Herzegovina, after consulting the Economic and Financial Committee, the economic policy conditions attached to the Community macro-financial assistance, to be laid down in a Memorandum of Understanding. The conditions shall be consistent with the agreements or understandings reached between the IMF and Bosnia and Herzegovina. The detailed financial terms of the assistance shall be laid down in a Loan Agreement to be agreed between the Commission and the authorities of Bosnia and Herzegovina.

During the implementation of the Community financial assistance, the Commission shall monitor the soundness of Bosnia and Herzegovina’s financial arrangements, administrative procedures, and the internal and external control mechanisms which are relevant to such assistance.

The Commission shall verify at regular intervals that Bosnia and Herzegovina’s economic policies are in accordance with the objectives of the Community assistance and that the agreed economic policy conditions are being satisfactorily fulfilled. In doing so, the Commission shall coordinate closely with the IMF and the World Bank, and, when required, with the Economic and Financial Committee.