SDA Club: Citizens will pay over 870 million KM for this Government's budget hole patching through new borrowing

(Patria) - The FBiH Government's decision to borrow as much as 350 million euros through bond issuance on the London Stock Exchange is nothing more than an intention for citizens and future authorities to pay the excessively high price for their poor performance, according to a statement from the SDA Club in the House of Representatives of the FBiH Parliament.

"Instead of borrowing for investment in capital projects, such as the construction of transport infrastructure or energy facilities, the FBiH Government is issuing bonds abroad for the first time in history to patch budget holes.
The FBiH Government will thus receive 350 million euros to spend on expenditures and outlays envisaged by the Budget for 2025, and the next government will have to repay the entire amount in July 2030, while citizens will pay 19 million euros annually in interest due to the excessively high interest rate.

In other words, for the 350 million euros intended for patching this year's budget holes, citizens of FBiH will pay a total of over 870 million KM," it is added.

The SDA Club states: "Considering the increasingly intense borrowing by the FBiH Government and the non-transparent spending of that money, as well as the negative trends that are already resulting in price increases and an increasingly difficult socio-economic situation in FBiH, citizens' concerns are completely justified".

"The FBiH Government is obliged, to begin with, to explain to citizens what exactly they intend to spend 350 million euros on and how the budget holes that they are trying to fill with new borrowing came about," they conclude.