Đonlagić: Banks from which the Federation takes a loan will gain a monopoly over other banks

If the Government of the Federation of BiH borrows 200 million KM from commercial banks as announced, we will see a new phenomenon in the Federation – a cartel of commercial banks! - warned Dženan Đonlagić, a DF deputy in the Parliament of the Federation of BiH, reports the reporter of the Bosnian news agency Patria.

- This means that the banks from which the FBiH Government takes a loan will make extra profit, thereby creating a cartel, i.e., gaining a monopoly over other banks operating in the Federation - explained Đonlagić, who is also a professor at the Faculty of Economics in Sarajevo.

The FBiH Government announced that it plans to cover the budget shortfall of 200 million KM by taking a loan from one of the commercial banks in the Federation.

Today, Đonlagić sent a parliamentary question to the Federal Minister of Finance, Jelka Miličević, requesting that the Government disclose which banks it plans to borrow from, for what period, and under what conditions.

It is important to know, Đonlagić warned, what the effective interest rate of that loan will be, meaning what hidden costs the Government will pay to the banks from which it takes the loan, writes Patria.