[“img”:”/img/vijesti/2023/05/milorad_dodik_zabrinut2.jpg”,”full”:”/img/vijesti/2023/05/milorad_dodik_zabrinut2.jpg”,”caption”:”Milorad Dodik”,”bg”:”393635″,”img”:”/img/vijesti/2023/05/zora_vidovic80.jpg”,”full”:”/img/vijesti/2023/05/zora_vidovic80.jpg”,”caption”:”Ministrica finansija RS Zora Vidoviu0107″,”bg”:”4d3a30″]
In the Official Gazette of the Republic of Srpska, the decision on the 58 issue of bonds of the Republic of Srpska was published provided in the amount of 210 million KM.
It is planned that 210,000 bonds will be offered to investors at a price of 1,000 marks each. The bonds have a maturity of five years, and the annual coupon rate is 6.1 percent.
The largest issue of bonds on the domestic market ever is a confirmation of the liquidity difficulties faced by the Government of Republika Srpska, which is due not once on June 28, but the repayment of 200 million euros per debt on the Vienna Stock Exchange from 2018.
The President of Republika Srpska Milorad Dodik and the Minister of Finance Zora Vidović assured the public in the past period that the money for debt repayment is available.
However, reaching for record debt on the stock market is a clear indicator that the entity government has not found the money to repay the debt, or if it has found it in part or in full, there is no money to meet regular budgetary needs.
The previous auction of bonds on the Banja Luka Stock Exchange showed that some investors were restrained and did not buy all the offered bonds, so it will be interesting to see how investors will react to the latest abundant offer of debt securities.
In the meantime, the short-term borrowing for six months on treasury bills held seven days ago was successful since it amounted to 34 million KM, while it was planned in the amount of 25 million KM.
In addition to interest in bonds for the upcoming auction, for which a public invitation is expected to be published, the question of the interest rate will also be very important. At the last bond auction, the interest rate was 5.8 percent, and now it is expected to be higher.
The total debt of Republika Srpska as of 2022 amounts to 44.2 percent of GDP.
