prijava
SARAJEVO, February 18 (FENA) - FBiH Finance Minister Jelka Milićević said that the FBiH Government today adopted the Debt Management Strategy for the period from 2021 to 2023.
At a press conference after the session of the FBiH Government in Sarajevo, Milićević stated that the simulations showed that FBiH will be able to maintain GDP growth of 2.5 to 3.5 percent in that period with external sources of borrowing of 1.9 billion US dollars, and that debt will rise from the current 26.4 percent of GDP to 31.1 or 31.5 percent of GDP.
“The goals of the debt management strategy are to provide funds for financing the needs of the Government with acceptable costs and risks, as well as the development of the domestic securities market,” Milićević pointed out.
She explained that the total debt portfolio managed on December 31, 2020, amounts to 5.8 billion KM, of which the external debt is 85.4 percent, and the internal 14.5 percent.
Milićević specified that the debt portfolio has a relatively low weighted average interest rate of 1.5 percent, which is 1.7 percent for domestic and 1.4 percent for foreign.
FBiH Finance Minister Jelka Milićević said today that neither FBiH nor RS is satisfied with the distribution of money collected from VAT.
Answering a journalist's question at a press conference in Sarajevo, Milićević said that the distribution was defined by the Law on VAT and that three finance ministers were members of the Indirect Taxation Authority's Management Board, as well as three other experts representing the entities, the Council of Ministers of BiH, with one observer from the Brčko District.
“I also think that the distribution is unfair on several grounds,” Milićevic pointed out.
Milićević said she had sought technical assistance from the IMF to analyze fundraising and allocation coefficients.
“They determined that the distribution was correct, which is why, after the formation of the new convocation of the ITA Management Board, we requested the same analysis,” said Milićević.
Minister Milićević stated that the refinancing risk is significant and currently amounts to 3.3 years for domestic debt and 6.2 years for external debt. Approximately 40 percent of foreign debt is sensitive to exchange rate fluctuations.
(FENA) A. B.
