BiH threatens Great Tribulation: The RS-BEING PREPARED IN GREAT FALL, BUT NO ONE SHOULD NOT STORY ...


Serbian is facing bankruptcy. Smaller BiH. Entity today by issuing bonds indebted to 46.9 million although the planned amount of the bond issue was 60 million. This amount does not endanger the budget, said Finance Minister of RS.

From the opposition suit: this government has decided to destroy all development and investment opportunities of the Republic of Serbian. The Republic of Serbian again be tasked to cover the budget deficit. This time, long-term bonds in the amount of 60 million marks. Ministry of Finance issued a public invitation for subscription and payment of the bond issue that will buy banks or commercial entities.

"The amount of 60 million is not big and it does not impede what is defined by the RS budget for 2015, which provided that our total indebtedness - short and long term amount to about 280 million," says Zoran Tegeltija, Minister of Finance RS.

The budget holes are too big - correspond to the opposition. What Government is doing a direct impact on the domestic economy.

"We can not pay such a price loans. In economics there is one basic rule - if the GDP growth lower than installment loans then the state is going to collapse, and the blockade of public finances. As the interest rate on the bonds between 4.5 and 6%, and the rate of economic growth are in our last year between 0, 1.5%, I think we're going to blockade of public finances, "says Milenko Stanic, head of the Finance SDS and Dragan Cavic, president of the NDP, adds:

"This government has decided that all development opportunities, investment and development through IBRD directed towards cover budget deficits, in order to maintain current liquidity budget, to pay salaries, duties".

Using funds from the issue of treasury bills of the Republic of Serbian Government managed to achieve liquidity when revenues fall short of expenditures within the year. Most of the previously-bills due for payment in the following budget year. In 2015, in addition to these 60 million of long-term bonds the government has already twice traded treasury bills.

"This is a very common move of this government. For years we have broadcasting treasury bills and bonds in terms of compensation hole in the budget. The fact is that the budget is now in dire straits, "adds Milan Johanson, vice president of the PDP.

Bonds of RS in Banja Luka Stock Exchange will continue tomorrow. Repayment period for the issue of bonds is four years, and the interest rate is fixed at 4.5%.

  • 18 Mar, 2015
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