KS Government Already Seeking First Loan of 13.1 Million KM!

The Sarajevo Canton Government has issued a public call for its first loan of the year in the amount of 13.1 million marks, announced the KS Ministry of Finance, reports the BH news agency Patria (NAP). This is only one-tenth of the planned borrowing by this Government, in order to cover the election year budget deficit of 130 million KM. 

The acting Prime Minister, Minister of Finance and Education of KS, Muhamed Kozadra, has issued an international public call to banks to finance the Canton, under three LOTs for long-term borrowing of up to five years. 

The funds from this loan will, as stated, be used for capital projects from the budget, but an analysis of the cantonal budget shows that most of the funds will be used to help struggling public companies such as GRAS, Skenderija, or „ZOI 84“.

Namely, as much as six million from this loan goes to the Ministry of Economy, which will transfer the money to loss-making companies „ZOI 84“ and BAGS from Vogosca, each receiving 2.5 million, and KSC Skenderija receiving one million, NAP has learned. 1.4 million KM is planned for the procurement and overhaul of public transport vehicles.

One and a half million KM is planned for the construction of the Academy of Performing Arts and the reconstruction of the student center. Under what conditions the Cantonal government, which formally has neither a prime minister nor a parliamentary majority, will borrow, and how much citizens will pay in interest, will be shown by the results of the public call, NAP reports.