Bišćević-Tokić: FBiH Government's Bill is a Threat to BiH's Constitutional Order

(Patria) - Regarding the Bill on Debt, Borrowing, and Guarantees of FBiH, which the Federal Government, led by Prime Minister Nermin Nikšić, has submitted to the parliamentary procedure, representative Jasmina Bišćević-Tokić has spoken out, sharply criticizing this move:

"The Federal Government, led by Prime Minister Nermin Nikšić, has proposed a law that allows FBiH to borrow on the international market without the consent of Bosnia and Herzegovina's institutions – an identical model to the one used by the RS Government. And while the SDP at the state level declaratively opposes the anti-Dayton actions of the entity leadership in Republika Srpska, the Prime Minister of FBiH and the President of the SDP are leading similar processes at the level of the Federation of BiH."

Bišćević-Tokić warns that this is a law that is in direct conflict with the current legislation of BiH:

"Such a move is directly contrary to the current Law on Borrowing, Debt, and Guarantees of Bosnia and Herzegovina, which clearly stipulates that external borrowing by an entity must be previously approved by the Parliamentary Assembly of BiH (Article 49). Thus, the Federal Government is following the practice of the RS Government, which has been trying to borrow outside the institutions of BiH for years."

She states that the provision introduced by amendments to Article 25 of the Law, which gives the Federal Government the right to independently decide on the issuance of bonds, is particularly problematic:

"The law, whose draft was prepared in 2017, and for which a public debate was held in 2018, is now being used as a basis for adopting norms that violate the constitutional and legal order of Bosnia and Herzegovina."

She warns that the possibilities for domestic borrowing have been exhausted, and the banking sector has lost confidence in the fiscal stability of the Federation, and that now, without transparency, recourse is being made to the international market:

"After the possibilities for domestic borrowing have been exhausted, and the banking sector has lost confidence in the fiscal stability of the Federation, the Federal Government is resorting to the international market, but without the institutional consent of the state, outside the law, without the Parliament of FBiH, and without transparency."

Finally, Bišćević-Tokić points out the serious risks of this legislative proposal:

"Such a move can jeopardize the fiscal sovereignty of Bosnia and Herzegovina in the long term, destabilize the financial market, and further weaken the international credibility of the state. Prime Minister Nikšić and his government are not only breaking the rules of fiscal responsibility – they are undermining the foundations of the statehood of Bosnia and Herzegovina."

She issued a clear call:

"I call on the representatives and delegates in the Parliament of the Federation of BiH not to support this law. I also call on legal, economic, and financial experts to thoroughly analyze all the implications of such a legal solution, so that the public is aware of the legal, political, and economic weight of this decision."