BANJA LUKA (Bosnia and Herzegovina), March 22 (SeeNews) – Bosnia's Serb Republic plans to conclude a 50 million marka ($27.6 million/25.6 million euro) long-term loan deal with domestic banks, according to local media reports.
The loan will be due in six years including a one-year grace period and will carry a maximum annual interest rate of 3.75% and minimum other costs, news portal capital.ba reported on Tuesday, citing government documents.
The government disclosed earlier that it will borrow 569 million marka in 2017, of which 364 million marka from domestic sources, including bond auctions, and 205 million marka from international sources.
The Serb Republic is one of two entities that form Bosnia and Herzegovina. The other one is the Federation.
Both entities have faced financial hardships after the International Monetary Fund (IMF) delayed the release of the second loan tranche to Bosnia under the country's current three-year funding arrangement over unfulfilled reforms. Recently, the IMF said the country has until the end of April to meet agreed reform targets in order to pave the way for consideration of the first review of the loan deal.
(1 euro = 1.95583 marka)