Mašić: The Government must say which bank it is borrowing from and under what conditions

SDP representative in the Parliament of the Federation of BiH Damir Mašić called on the Government of the Federation of BiH to disclose to citizens which commercial bank it intends to use to indebt the Federation for an additional 200 million KM, under what conditions it will receive the loan, as well as other terms of that loan, reports the news agency Patria.

After the IMF did not approve a new tranche of the loan for BiH, the FBiH Government will cover the shortfall of 200 million KM in the federal budget through a loan from commercial banks, but the Government has still not revealed which bank it will borrow from, under what conditions, nor at what interest rate.

DF representative Dženan Đonlagić warned of the harmfulness of such a loan. He previously recalled that the average interest rate at commercial banks in BiH last year was 6 percent, which is extremely high, while the interest rate for the last IMF tranche was only 1.09 percent.

Federal Prime Minister Fadil Novalić stated at one point that the loan from a commercial bank that the Government plans to take out will be favorable, even more favorable than the IMF loan, which Đonlagić assessed as an almost impossible project.

SDP representatives also opposed the new indebtedness of the Federation, reports NAP.