Republika Srpska (RS) is obviously entering into financial problems, which can be seen after it failed to sell bonds in the relatively small amount of 25 million BAM in two days (the day before yesterday and yesterday).
This is a type of indebtedness with commercial banks and other financial institutions, and this is exactly the instrument RS has used in recent years to preserve the flow of money into the entity budget.
This time, bonds with a maturity of five years in the amount of 25 million BAM were offered, but only 21 million BAM were received. The auction was extended to a second day but without success.
In the end, offers were accepted in the amount of slightly less than 21 million BAM, at a high-interest rate of 5.8 percent.
This failure shows that the RS could find itself in big problems because this year it has to pay back hundreds of millions of BAM for previous debts. The question arises as to how they will collect this money, in parallel with the money needed for the normal functioning of the budget.
In addition, by refusing to buy entity bonds, commercial banks have sent a clear signal that they no longer have confidence in the RS financial system, Biznis Info reports.
