Novalic talks on the Sale of Treasury Bills

April 14, 2017 12:15 PM

novalicThe topic of the internal debt of the FBiH on the sale of treasury bills is current in recent months. The Prime Minister of FBiH Fadil Novalic noted that the Government of FBiH has to take loans because otherwise the holes in the budget would be filled by reducing social benefits.

He explained that the deficit that exists must be rehabilitated every year in the short term and with the aim to maintain financial stability.

“There are two ways to do it. The first is to reduce social benefits, i.e. pensions, disability benefits and various fees, and we must not let that happen. We cannot fill holes in the budget over the back of the most vulnerable groups of society. They cannot bear the blame for a negligent fiscal policy of those who were in this position before me,” said Novalic.

According to him, the second way is borrowing and there is a paragraph in the budget for each year that defines which part of the budget will rehabilitate the foreign debt, such as loans from international organizations, and which by internal borrowing through, for example, the sale of treasury bills.

“This is regulated by the budget in details so the perception in the public that we are in the panic and running out of money is created without any need. We are only realizing a financial plan that was adopted by the Government and Parliament of the FBiH,” concluded Novalic.

On the other side, Professor at the Faculty of Economics in Sarajevo Mehmed Jahic believes that every indebtedness represents the delay of the problem.

“A few days ago, we had the opportunity to see that the Government of FBiH indebted for new 20 million BAM and barely. This is a too serious thing for future generations because who knows whether Novalic will be prime minister ever again. It is easy to borrow on the expense of future government, but the question is who, when and how will repay that debt,” said Jahic.

(Source: Er. M./Klix.ba)

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