VIDOVIĆ: SRPSKA BONDS BOUGHT BY NINE AMERICAN FUNDS

BANJA LUKA. MAY 6 /SRNA/ – The Minister of Finance of Republika Srpska Zora Vidović said that nine funds from the United States purchased Republika Srpska bonds on the London Stock Exchange.

"We cannot disclose their names at the moment, because stock exchange rules stipulate that buyers can be made public after 90 days," Vidović said at a press conference in Banja Luka.

Vidović stressed that Republika Srpska has now achieved a lower interest rate of 6.25 percent, while Euribor stands at 2.5 percent.

She reminded that in 2022 the interest rate was 4.75 percent, while at that time Euribor was negative 0.57 percent, noting that when the two are "balanced out," Republika Srpska has an effective interest rate of 3.9 percent.

According to her, the previous period, when there was deflation and Euribor was negative, cannot be compared with the current period of inflation and rising Euribor.

Vidović said that the economy, municipalities and cities in Republika Srpska are currently borrowing at higher interest rates, noting that Banja Luka has taken a loan at 7.9 percent interest.

She stated that this year investments financed from the budget amount to BAM 800 million.

"There are currently BAM 6.6 billion in investments being implemented in Republika Srpska, meaning contracts have been signed and works are underway, which is 33 percent of the GDP planned for this year," Vidović said.

She added that, given the expected inflation, GDP will likely be higher.