Official Proposal by Nikšić's Government: Federation of BiH to Borrow 2.3 Billion KM in 2026

Patria
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Official Proposal by Nikšić's Government: Federation of BiH to Borrow 2.3 Billion KM in 2026

(Patria) - The Government of the Federation of BiH, at its session in Sarajevo yesterday, determined the Draft Budget of the Federation for 2026 in the total amount of 8,898,279,146 KM.

The budget proposal will be sent to the parliamentary procedure for urgent adoption. The FBiH budget for next year is 690 million KM higher than this year's.

Patria reported two days ago on the reporting by the portal Istraga.ba, which published information that the current deficit in the budget of the Federation of BiH amounts to 1.06 billion KM.

How unfavorable this is for the financial stability of the FBiH, as well as for the public image of the current government, is also shown by the fact that the minutes from the FBiH Government session were declared a secret document.

"For the Federation to survive at all, the FBiH Government plans a new borrowing of 2.3 billion KM next year. According to Istraga's information, it was announced at the session itself that the Federation should borrow about 1.5 billion marks on the London Stock Exchange by issuing bonds. The remaining borrowing will be on the domestic market," reported the Istraga portal on December 28.

Two days later, all this information, which the federal authorities refused to comment on publicly, was confirmed.

According to the FBiH budget document, which Istraga published on its X profile this evening, the item "Receipts from Borrowing" lists a borrowing plan of 2,336,952,480 KM.

Of this amount, the plan is to borrow 1.98 billion KM long-term, and 360 million KM short-term on the domestic market, which implies the largest bond sale in the history of the FBiH.

How much of a financial "rush" this is is best shown by the fact that, in addition to borrowing 2.3 billion, the Government of the Federation of BiH also plans a budget deficit for 2026 in the amount of 1.3 billion KM.

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