The RS to be indebted for additional 58 million BAM?

June 7, 2017 7:00 AM

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By the end of the year, the RS will get further indebted for another 58 million BAM from the World Bank.

The Government of the RS used the opportunity given by the Assembly through the decision on long-term indebtedness, and it negotiated a loan on 30 years, which could improve the situation in the sector of public finances. The decision to accept the loan, in which was stated that these funds will be spent on assistance to the budget with the aim of support of the reforms, was already published in the Official Gazette. According to the Ministry of Finance, everything is arranged, but one more link is missing in the chain, and that is the agreement of the Parliament of BiH.

Long-term indebtedness with the World Bank in the amount of 29 million EUR is planned within the budget of the RS for 2017. However, the consent of the Parliamentary Assembly of BiH is requested in order to withdraw these funds, as explained by the Ministry of Finance of the RS.

However, the President of the RS has other options on his mind. He asked for a loan from Russia, and he also came up with the scenario within which authorities in the RS would not need the support of the Parliament of BiH at all.

“One of the ideas is to collect some money and stabilize the entire system through bonds that would be emitted by the RS. And we are currently searching for a way to do it. I think that we can do it and I believe that people with whom we spoke in Russia are credible,” said Milorad Dodik, the President of the RS.

The arrangement with the IMF is planned to be conducted in three stages in the amount of 150 million BAM. However, since there is nothing happening with these funds, the Government is borrowing planned millions at home. Besides filling the budget through bonds and treasury bills on the stock exchange market and millions transferred from the RBI, the Government of the RS took the loan in the amount of 50 million BAM from commercial banks as well.

(Source: fokus.ba)

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