UKC RS clears millions in tax arrears via World Bank healthcare funding

The formal loan agreement was finalised in Banja Luka by state Minister of Finance and Treasury Srdjan Amidzic and Republika Srpska Minister of Finance Zora Vidovic, alongside Health and Social Protection Minister Alen Seranic, who detailed how the financing will be distributed.

Minister Seranic confirmed that a substantial portion of the approved capital will go towards clearing unpaid taxes and contributions accrued by the clinical centre between 2012 and 2019, which total slightly above 45 million Bosian marks (approx. €23.01 million). Initial drawdowns of approximately 20 million marks (approx. €10.23 million) are expected to immediately resolve pension and insurance eligibility hurdles for clinical staff affected by the historic contribution backlog. The remainder of the tax liabilities is slated for settlement by the end of the year.

Beyond addressing historical fiscal arrears, the international funding will support the long-delayed refurbishment of three psychiatric facilities: the Jakes Special Hospital for Chronic Psychiatry, the Sokolac Special Hospital for Chronic Psychiatry, and the Visegrad Home for Persons with Disabilities. Updated technical documentation will be prepared to reflect current economic requirements for these institutional overhauls.

Additional allocations will target the refurbishment of local health centres, the procurement of modern medical equipment for hospitals, and nationwide public health studies, including comprehensive epidemiological research across the entity.

State Finance Minister Srdjan Amidzic noted that the facility carries a 32-year repayment schedule with a seven-year grace period and an interest rate hovering around 3 percent. Minister Vidovic added that the arrangement brings the total active portfolio of World Bank initiatives in Republika Srpska to six, with discussions already underway regarding three prospective projects.