Every Second Euro of Loan was spent on Infrastructure in BiH

March 23, 2017 12:30 PM

Diaspora Money magazin.baAccording to the Ministry of Finance and Treasury of BiH, the external debt rose from 3.96 billion BAM in the last ten years, which was the amount in 2007, to the current 8.36 billion BAM now. All 8.36 billion of debt were not created after the war. It includes the remaining debt that BiH inherited from the former Yugoslavia in the process of succession. Part of this debt was returned and the rest that is yet to be paid off amounts to around 1.5 billion BAM. From 8.36 billion BAM of debt, the FBiH should return 5.21 billion BAM, the RS 3.07 billion BAM, and Brcko District 20.5 million BAM, while state institutions should return 54,300,000 BAM. The greatest value of the foreign debt was recorded at the end of 2015 when it amounted to 8.41 billion BAM.

To recall, the arrangement with the IMF, in the amount of about one billion and 100 million BAM, was realized in September last year and has not entered into the analysis of public debt in 2016.

The average indebtedness of citizens in BiH amounts to 3370 BAM. If you are looking by entities, each citizen in the RS is indebtedness, on average, to 4,400 BAM and in the FBiH 2400 BAM. From the total new debt, which amounts to 6.9 billion, a total of 3.6 billion BAM, or 52.14 %, is intended for several infrastructure projects. Among them is one of the most important construction endeavors in BiH, the construction of the highway on Corridor 5C, as well as construction and reconstruction of other roads, railways, water and power supply and other projects of reconstruction of BiH after the war.

The total amount of debt aimed at the public sector amounts to 2.39 billion BAM. The public sector includes loans for support of the following projects: education, war victims, demining, cultural heritage, healthcare sector, projects for adaptation of the social sector, development of municipalities, stand-by arrangement, assistance to refugees and displaced persons, macro-financial assistance, etc. It is interesting to note that the third type of debt that are loans intended for the economic sector, make only 13.36 % of the total debt. In this sector, BiH needs to return only 925 million BAM.

The economic activities include loans for the support of following projects: local initiatives, demobilization, farm, industry, forestry, export support to enterprises, support for the privatization of banks, trade and transport facilitation, projects for employment, local initiatives, technical assistance in privatization, the adjustment of the business environment, loans for the private sector, development of small agriculture, development and protection of forests, etc..

When it comes to the debt that we are returning at the moment, we owe most of the money to the World Bank, a total of 2.33 billion BAM or 421 million BAM to IBRD, and 1.9 billion BAM to the International Development Association (IDA). We also owe 1.68 billion BAM to the. European Investment Bank (EIB)  Interestingly, the International Monetary Fund (IMF) is in the third place when it comes to the amount of loans that we need to return, which is the amount of 963 million BAM. This amount does not include the last credit arrangement with the IMF, and which is the most recent issue in domestic institutions.

(Source: akta.ba)

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