The Republic of Srpska and Russia negotiate a loan ,that would pay off earlier loans, says the Minister of Finance, Zoran Tegeltija.
Public debt of RS amounted to four billion and 700 million kuna at the end of 2012. (two billion and 400 million euros), it was said by the information on the public debt, which considered the RS parliament.
Tegeltija said that the share of public debt in gross domestic product (GDP) amounted to 53.69 percent, which is at the level of moderately indebted countries.
Opposition parties, however, warned that the RS is indebted.
Tegeltija confirmed that the RS may soon borrow from Russia, they negotiating the Russian loan in order to pay off earlier loans.
RS could borrow from Russia half a billion marks.
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“We are negotiating with the Russian government on some loan funds,” said Tegeltija, stating that they do not negotiate how to get a loan of 500 million and create new debt, but that, if in the case of favorable conditions, refinance any of previous adverse credit as well as some of the bonds and loans coming due.
He said that the RS arrangement with the IMF, “gives credibility with other financial institutions ” and that public finances would be in even better situation if there was an agreement with another country that could act as guarantor for the loan.
The Minister of Finance has said that he is “proud” of the fact that the RS is indebted with 19 lenders.
“I wish we had 119 lenders. That is a sign that you have support and the best support is to get loans from those governments,” said Tegeltija.
