Republika Srpska PM suggested that the Bank of RS should be formed

Prime Minister of Republika Srpska Radovan Višković said today at the session of the National Assembly of the RS that a bank of the RS should be formed in order to avoid “blackmailing of individual banks” in the financial sector.

According to him, there are banks whose owners order them not to do business with RS institutions, which they “must get rid of”.

“They want to see the economic collapse of the RS, and one thing is for sure that the RS will not go bankrupt,” said Višković and added that the Banka Srpska issue should be resolved in the next period in the bankruptcy proceedings.

He stated that the interest rates in the Federation of Bosnia and Herzegovina are lower than in the RS because the FBiH has a Development Bank which, by placing its funds, influences other banks to behave in this way and thereby lower interest rates.

Višković reminded that the RBI used to do this in the RS during the coronavirus, but now they don’t have such capacities.

Republika Srpska is taking on a new debt in the amount of 210 million BAM, and the interest rate it will pay for the next five years on this debt is as much as 6.1 percent.

Igor Crnadak, head of the PDP Deputies Club in the National Assembly of Republika Srpska, today called on Prime Minister Radovan Višković to explain why the interest rate is so high, given the fact that about twenty days ago on the Sarajevo Stock Exchange, the FBiH Government sold bonds with a repayment term of seven years and at an interest rate of 3.8 percent.

“The difference is huge and please explain why Republika Srpska pays 6.1 percent interest for its debts, while literally in the same country, at the same time, FBiH pays 3.8 percent,” asked Crnadak.

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