The Republika Srpska (RS) borrowed 34 million BAM yesterday by issuing treasury bills through the Banja Luka Stock Exchange.
Like bonds, treasury bills are securities that are bought mainly by commercial banks, and for which money is returned from the budget upon maturity and with interest.
This means that this is a type of debt with commercial banks.
However, what makes it very less favorable is the fact that treasury bills are short-term securities, unlike bonds.
In this case, we are talking about semi-annual notes, which means that the money borrowed yesterday must be returned by the end of this year, on November 23rd, 2023.
Namely, RS planned to borrow 25 million BAM yesterday. However, due to the obvious lack of money in the budget, all the offers that arrived were accepted, so a total of 34 million BAM was collected.
Borrowing was carried out with an interest rate of 2.2 percent, which is a very high-interest rate for short-term debts.
