Penalty payments: BiH officials' inaction cost 25 million KM!

At the end of last year, Bosnia and Herzegovina had 2.1 billion convertible marks in approved loans that it did not draw down, and for which it paid 3.4 million KM in penalties in 2015 alone. This is a record to date, with which creditors have punished us for unused funds. Namely, the penalty amount has ranged from 1.1 million to 2.7 million KM annually so far. The "commitment fee" has also been indicated this year, but the amounts of funds per entity have not been discussed, writes Patria.

Always the same unused loans

It is common for the Federation to pay higher penalties for undrawn funds than the RS each year. Thus, in 2014, the Federation paid 1,421,137 KM, while the RS paid 401,326 KM. However, this year, the penalties that the Republika Srpska must pay are clearly increasing, as it takes out new loans almost uncontrollably.

Unfortunately, the Federation has been paying penalties on unused funds for the same loans for years. One of these loans is a regular "tax" for the entity's budget, and it relates to the wind farms in Mesihovina above Livno, which were supposed to be completed last year. But, almost every year, this undrawn loan from the German Development Bank in the amount of 138 million KM has cost this country. Thus, in 2014, penalties of 374 thousand KM were collected. Just as in 2014, last year in 2015, another 374 thousand marks were paid to the German Development Bank based in Frankfurt. It seems that this loan has so far swallowed more than two million KM, and for nothing.

Therefore, no one has yet questioned the solution for this, and numerous other loans, which stand as investments without any reason and waste money in vain. Or is the reason the usual problem - ignorance?

Two billion stands idle, we are asking for a billion from the IMF

The total "commitment fee", with which the idleness and irresponsibility of state officials have punished the citizens of this country, amounts to about 25 million convertible marks. How many jobs is that? That's about 1,000 quality jobs, worth 25,000 KM each. This is money that is primarily returned from the budget, so it could be said that it is collected directly from the accounts of citizens who fund those budgets. So, we certainly have an overly expensive state, due to the large administration, but which is obviously led by incompetent people, whom we elect anyway.

The penalty figures will grow every year, because the loans that this government is taking out are growing, and it has not even started spending the ones it has already borrowed.

Perhaps someone should seek an explanation from the finance ministers at the BiH and Federation levels, and the prime ministers of BiH and the Federation, why this country is borrowing a billion convertible marks from the IMF, when two billion convertible marks are waiting to be invested.