Since then, it has been extended three times and is set to expire on May 28, 2001. Bosnia and Herzegovina has made considerable progress towards macroeconomic stability.
Inflation is low and the convertible marka has gained wide acceptance.
Structural reform is proceeding, and the reform of the sales tax and replacement of the payments bureaus with a modern clearing system in early 2001 were important steps toward the establishment of an environment conducive to private sector development. However, despite several years of rapid economic growth since 1996, the level of real output remains approximately half of the prewar level and unemployment is still high. To accomplish this, the transition to a market oriented economy and further structural reforms to attract foreign investment are essential. These include privatizing large state owned enterprises including banks, improving bank supervision, and other measures to establish a stable and transparent business environment.