Dodik announced: Republika Srpska to borrow 300 million USD

dodik2Republika Srpska (RS) shall borrow 300 million USD, confirmed Milorad Dodik, the president of Republika Srpska.

“The contract related to the support of the RS budget with 300 million USD has been finalized. The interest rate is 3% fixed, at the annual level. We believe that this is a very good arrangement, the grace period is the period of the loan, 36 months, after which it might be extended again for the same period of time, given that interest must be paid along with the payments,” said Dodik at the press conference in Banja Luka.

According to him, this is “one of the operations realized in cooperation with the business world who have confidence in what Republika Srpska really is.”

“This money will be enough to maintain the stability of the payment of pensions and salaries and to reinforce the liquidity of the public sector. Now we will be able to pay with this money the obligations that we should pay and we did not do on time. Primary we will use this money to replace expensive existing loans whose interest is over 5 or 6 %, to replace them with the more relaxed conditions, in order for the RS to stabilize its finances, and there will not be any challenges,” said Dodik.

He emphasized that the RS will get 50 million USD this year from the agreed arrangement.

He explained that the creditor is registered in the United States, specifically in Florida, and that it is engaged in financial affairs. He also stated that it is a reference entity and fully potent loan giver. According to earlier information, it is an American investment fund “Global Bancorp Commodities & Investment.”

(Source: faktor.ba)

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