A 45 million euros loan from the International Bank for Reconstruction and Development for additional financing of the Health Systems Improvement Project in Republika Srpska will be used, among other things, for the settlement of taxes and contributions of the University Clinical Centre of Republika Srpska, the reconstruction of three psychiatric facilities, the renovation and equipping of other healthcare institutions, and public health research.
Today in Banja Luka, the loan agreement was signed today in Banja Luka by the Minister of Finance and Treasury in the Council of Ministers of Bosnia and Herzegovina, and the Minister of Finance of Republika Srpska, Zora Vidović, while the Minister of Health and Social Welfare of Republika Srpska, Alen Šeranić, specified the intended purpose of the funds.
Šeranić said that part of the approved funds will be used to settle taxes and contributions of the University Clinical Center of Republika Srpska, whose liabilities on this basis amount to slightly more than BAM 45 million and relate to the period from 2012 to 2019.
He stated that after signing the agreement, it will be possible to withdraw about BAM 20 million, or around EUR 10 million, which will be used to pay taxes and contributions for the University Clinical Centre of Republika Srpska.
“This will allow certain employees of the Clinical Centre who had issues with unpaid contributions to exercise their right to a pension without any problems,” Šeranić said.
He expects that the second part of the funds will be withdrawn by the end of the year, which would completely settle the obligations of the University Clinical Center on the basis of tax and contributions.
Remaining funds will be directed towards several purposes, which include the completion of reconstruction of three psychiatric facilities – Special Hospital for Chronic Psychiatry Jakeš, Special Hospital for Chronic Psychiatry Sokolac, and the Home for Persons with Disabilities in Višegrad.
Šeranić said that technical documentation for these projects has existed since 2022, but due to the passage of time, it will be necessary to revise it in order to determine the actual needs and the funds required for the reconstruction and extension of the facilities.
Part of the funds will also be used for the renovation of other healthcare institutions, including health centers, the procurement of equipment for health centers and hospitals, as well as various researches related to public health of the population of Republika Srpska, including epidemiological research.
Minister of Finance and Treasury of Bosnia and Herzegovina, Srđan Amidžić, said that the total project value amounts to 45 million euros, with a repayment period of 32 years and a grace period of seven years, while the interest rate is around three percent.
He estimated that it is about affordable funds which should contribute to the quality of health care, and betterment of the position of employees in healthcare institutions.
Finance Minister of Republika Srpska, Zora Vidović, said that the implementation of this project will improve healthcare and complete the settlement of old obligations of healthcare institutions. She stated that Republika Srpska currently has six ongoing projects with the World Bank, while discussions are underway for three more.
“Generally speaking, the most favorable funds that can be engaged on both the domestic and international markets are World Bank funds,” Vidović said, Fena writes.
