In accordance with the Decision on long-term borrowing of Bosnia’s Republika Srpska (RS) entity for 2023 and within the framework of the Law on Borrowing, Debt and Guarantees, the RS held two bond auctions Monday with which it secured a total of 75 million Bosnian marks (some €38 million).

The demand for securities in both trades was greater than the supply, and this time too more institutional investors participated in the trading, as well as individuals: from the RS, the Federation (FBiH) entity, and the countries of the European Union, the RS Finance Ministry said.

As part of the 59th bond auction at the Banja Luka Stock Exchange, 30,000 bonds with a nominal value of 1,000 Bosnian marks were sold, with a maturity of seven years and an interest rate of 6.1% annually. This bond issue is linked to the euro currency clause.

As part of the 60th bond issue, 45,000 bonds with a nominal value of 1,000 marks were sold, with a maturity of five years and an interest rate of 6.1% annually. The principal is paid once a year, as is the interest.

The principal is paid once upon maturity (seven years from the date of registration of the issue), and the interest is paid once a year.

The purpose of the funds collected through the issue of bonds is to provide funds for the RS Budget for 2023.

“The state of the total RS debt, according to preliminary data as of May 31, 2023, amounts to 6,253.4 million Bosnian marks, i.e. 40.5% of GDP, while the RS public debt amounts to 5,270.3 million marks, i.e. 34.1% of the GDP,” the Ministry said, adding that judging from the data above, the RS has the capacity to fulfil all its due obligations within the deadline and in accordance with the strategic plan.