The external debt of BiH on the 31st of December 2015 amounted to 8 billion and 401 million BAM, and it includes the external state debt in the amount of 8 billion and 246 million BAM, which is allocated to the FBiH, Republika Srpska, Brcko District of BiH and institution of BiH, and the external debt of entities and District in the amount of 155 million BAM.
The external debt of BiH in 2015 was increased by 2.23% (183.22 million BAM) compared to 2014, which is a result of engaging approved loans, reduced by the amount of paid equity with the correction of the section regarding the exchange rate differences at that period.
In 2015 was engaged 400.98 million BAM of approved loan funds, of which 21% relates to loans whose first withdrawal started in 2015 (CEB, IDA and IBRD). Of the total amount of withdrawn funds, 34.37 % refers to the IBRD, 30.16 % refers to the EIB, 11.33%, on the EBRD and IDA, which is 5.41%, etc.
Approximately half of the external debt of BiH is exposed to interest rate risk, the risk of interest rate fluctuations. The share of loans with variable interest rates in the structure of external debt is 49.8%, which indicates that about half of the portfolio of external debt is exposed to changes in reference interest rates in the market, which may affect the cost of debt servicing. On average it takes 4.2 years for refining of interest rates or to changes in interest rates on external debt, a debt that is refined in the first year was 52.4 % and in 2016 a total of 52.4% of external debt was subject to change of interest rates, as stated in the information.
Compared to the previous year, the interest rate risk is slightly reduced. In order to further reduce exposure to this risk, it is desirable to borrow at a fixed interest rate while taking into account the relative cost and risk with respect to the current cost of variable interest rates lower than the cost of a fixed interest rate.
Otherwise, BiH is on the doorstep of new debt with the MMF, a letter of intent has already been sent, but the public still does not know what is in it. It mentions a new billion BAM of debt.