BANJA LUKA (Bosnia and Herzegovina), October 3 (SeeNews) – Serbia's Komercijalna banka is issuing a 50 million marka ($30.1 million/25.6 million euro) long-term loan to Bosnia's Serb Republic under a deal signed on Tuesday, the bank said.
The loan will be extended for a period of six years, with a grace period of one year and an interest rate of 3.8 percent, Komercijalna banka said in a statement.
This is the first time Bosnia's Serb Republic has signed a loan deal with a commercial bank outside of Bosnia.
Komercijalna banka Beograd has a subsidiary in the administrative center of the Serb Republic, Banja Luka. The Serb Republic is one of two entities that make up Bosnia and Herzegovina, the other is the Federation.
Bosnian entities have been fighting to keep liquid after the International Monetary Fund put its agreement with the country on hold due to unfulfilled reforms.
(1 euro=1.95583 marka)