Zvizdić burdens Sarajevo Canton with another 30 million marks!

The Government of Sarajevo Canton is preparing for a new borrowing from commercial banks to cover a budget deficit of 20 million marks, reports the Bosnian news agency Patria (NAP). The Ministry of Finance of Sarajevo Canton published a public call back in June, and the deadline for banks willing to place a new lucrative loan to the Cantonal government expired at the beginning of August.

According to the terms of the call, the Government of Sarajevo Canton, controlled by the Sarajevo SDA and its president Denis Zvizdić, will indebt citizens over the next 10 years in order to fill budget gaps in the election year. To receive 20 million KM from commercial banks this year, the Canton will commit to repaying nearly 30 million KM over the next 10 years.

According to economic experts, such borrowing has catastrophic consequences for the economy, as it stimulates interest rate growth and reduces banks' lending activity, since banks can place money with the state and secure a safe profit. At the same time, Sarajevo Canton is thus burdening itself with debt for current consumption, making any development plans impossible for all future governments, reports NAP.