Sarajevo Canton to borrow 90 million KM, will prefer bank with lowest interest rate

(Patria) - The Ministry of Finance of Sarajevo Canton has issued a public call to banks for long-term borrowing of Sarajevo Canton in 2025 in the amount of 90 million KM for the purpose of financing capital projects and the accumulated deficit from previous years planned in the Budget of Sarajevo Canton for 2025.

The public call stipulates that the selected bank must offer a fixed annual interest rate of up to 4.2% (effective interest rate) and a one-time fee on the approved loan amount, with a minimum repayment period of ten years including a three-year grace period and promissory notes as collateral.

The ranking list will be compiled in ascending order of the effective interest rate, with the bank offering the lowest effective interest rate ranked first.

If multiple banks offer the same interest rate of up to 4.2 percent, preference will be given to the bank offering a higher amount.

The public call stipulates that contracts may be signed with multiple banks and will be concluded after the Government of Sarajevo Canton adopts a Decision on long-term borrowing.