RS faces EUR 300 million London bonds repayment

(Patria) - The Republika Srpska entity faces a EUR 300 million repayment at the end of April for bonds issued on the London Stock Exchange, which it plans to cover with new borrowing of almost BAM 1 billion, reports Capital.

We remind you that the Republika Srpska borrowed this amount five years ago on the London Stock Exchange and has only paid interest so far, with the principal due in full on April 20 this year.

At the time, the Republika Srpska borrowed at an interest rate of 4.75 percent.

Incidentally, the Government of Republika Srpska plans to borrow EUR 500 million this year by issuing bonds on the international financial market.

According to Capital's information, the government plans to repay the debt for the London bonds with this new borrowing.

According to the president of SNSD, Milorad Dodik, the new borrowing was one of the reasons for the recent resignation of the Prime Minister of Republika Srpska, Savo Minić.

Dodik said at the time that it was a technical issue raised to remove dilemmas because Republika Srpska needs to enter the international capital market, so it was decided to resolve it to avoid later disputes.

We remind you that the bond issue on the London Stock Exchange is also accompanied by a lawsuit with a Swiss consultant who claims that the Government of Republika Srpska defrauded him.