The Minister of Finance of Republika Srpska Zora Vidović stated for SRNA that the financial situation in Srpska is stable despite the economic and political sanctions, and ordered for all obligations to be paid from the budget, which is projected for the next three years and which will enable new investments worth BAM several billion.
"Our public debt is 31 percent, and the law allows 55 percent of GDP. The total debt is about 37 percent, and the debt allowed by law is 60 percent. We stick to that limit and I think that debt is quite low. At the end of the year, it will turn out to be even lower because the GDP, which we planned for this year, will be much higher," Vidović said in the SRNA podcast.
She pointed out that this is an extremely low level of indebtedness considering that previously, while the opposition was in power, this debt reached a historical maximum and that with a low GDP rate.
"At that time, they had a total debt of 59 percent, and the limit was 60 percent. Their public debt was 54.9 percent, and the upper limit was 55 percent. This means that they were at the limit on one and the other debt, by the law. The fact that they had five billion GDP, and they were in debt with three. Today we have 16.5 billion GDP and are indebted with five. That is a simple calculation and every citizen can calculate it, so is their story about the current alleged enormous indebtedness does not hold water and serves only to cheap daily political purposes", emphasized Vidović.
She pointed out that the Government of Republika Srpska regularly settles all its obligations, and that no payment was late, and that is why Srpska received an excellent credit rating from renowned credit rate agencies.
"I am surprised by the opposition that lives in Republika Srpska, and constantly talks about bankruptcy. However, although they wished for it, although it is not clear to me, it did not come true, nor will it.
We have laws that we follow. We have a good credit marks; we received a 'B' stable rating. This means that the debtor can and is capable to fully fulfilling his obligations. Regardless of that the American Embassy in Bosnia and Herzegovina says otherwise, this is the word of experts and renowned companies," Vidović stressed.
She stated that there are problems on the international financial market, which Republika Srpska successfully entered before, and despite the anti-propaganda, there are opportunities for borrowing at low interest rates for the implementation of numerous infrastructure projects.
Speaking about infrastructure projects and their financing, the Minister of Finance of Srpska states that by the end of the year will be signed a contract with the World Bank for the construction of a road on the Foča-Šćepan polje.
"Currently, in Republika Srpska, we have projects worth BAM two billion and 800 million under implementation. This is beyond what the budget allocates for investments, and in the next year it will be somewhere close to four billion, because this year there will also be the signing of the contract on to the construction of the highway section on the '5C' corridor from Vukosavlje to Brčko," Vidović emphasized.
Speaking about the budget for the next year, Vidović noted that the budget should be on a realistic assessment, with reduced inflation to 1.1 percent.
"Investments from the budget are the largest in the health sector, and now we have about 800 million investments, in addition to those of two billion and 800. In the next year, we planned another 330 million. However, education is not far behind either, because we have large investments in Istočno Sarajevo when it comes to the construction of student dormitories and faculties," Vidović said.
She reminded that the budget of Republika Srpska was in a significant surplus, but that the period of the corona virus pandemic had taken its toll and had a negative impact on finances.
"At the session of the National Assembly in 2023, we brought a budget consolidation program, according to which we should be in surplus in 2026. We are sticking to it. Last year, the budget was in a deficit of 257 million BAM, which is how it was projected. The plan is that by 2026 year, the budget will be in surplus again," announced Vidović.
The Minister of Finance of Republika Srpska stressed that the Government objectively approaches all problems in local communities. "We approach every local community equally, regardless of who is in power, and we are at the service of the citizens and their needs. I will cite the example of Bileća, a municipality governed by the opposition at the republican level, to which we gave BAM two million, because the situation was extremely difficult and I believe that it is difficult there at this point as well. I know that the situation in Sokolac is also difficult. The new leadership that will come after the local elections will have to consolidate the situation, to make a plan for how it will work and bring the situation to a more or less solid state," Vidović stated.
Vidović indicated that Serbia's support to Republika Srpska is significant, which is based on respect for the Dayton Peace Accords and the constitutional arrangement of Bosnia and Herzegovina.
"Serbia, as can be seen from the numerous statements of President Aleksandar Vučić and other high-ranking officials there, absolutely supports the Dayton Agreement, as we do. We only ask to have the powers given to us by the Dayton Agreement and nothing else," said Vidović.
Apart from this, she added, financial support from Serbia is also significant.
"In each municipality, we carried out a certain project from the funds transferred by Serbia, and that is very important. Likewise, Serbia helps a lot to the municipalities in the Federation of BiH. In addition, the moral support of Serbia in our fight for respect of the Dayton Agreement and the protection of the Serbian national issue and Republika Srpska means a lot," Vidović pointed out.
She assessed that the lack of help from the federal authorities to the local communities in that entity, where the majority Serb people live to a significant extent, is evident.
According to her, this reflected in the lack of funds for the construction of infrastructure or the overall functioning of those municipalities.
She announced that starting next year, the budget of Republika Srpska will provide for it funds to help the budgets of local communities in FBiH, in the amount of BAM one million each, and we are talking about Drvar, Grahovo, Glamoč and Bosanski Petrovac.
"We have now decided on a systematic way of helping, and that means that in the budget of Republika Srpska for 2025, there will be an item for these four municipalities, of BAM one million each, which will represent secure financing. I think it will greatly help their budgets, which are very small", stated Vidović.
She also stated that Republika Srpska showed solidarity when it comes to the flooded municipalities in FBiH in the desire to help people in need.
"We know what it was like in 2014 when we had a problem with floods in Republika Srpska. Providing help in times of need is quite normal and that is what every well-meaning person will do. The President of Republika Srpska provided BAM 250,000 from his cabinet for the needs of the vulnerable population in the flooded municipalities in the FBiH," said Vidović.
She added that she would like to see such a reaction from FBiH as well, but, unfortunately, there is none, and reminded of their reaction during the fires that hit Republika Srpska this summer.
Referring to the fact that the negotiations of the social partners in Republika Srpska on the minimum wage have started, the Minister of Finance says that it is high time that they come to an agreement, because for the past few years the Government determined that amount.
"It was incorrect all these years that they couldn't come to an agreement and that the government had to react. In that case, the government has to make a decision, and then everyone is dissatisfied. I'm glad that they started negotiations early, they have a lot of time until the end year and I believe that they will come to an agreement," said Vidović.
She emphasized that the Government of Republika Srpska will respect everything agreed by the social partners, and stated that all the information and statistical data that the Government has are available to trade unions and employers and that there are no secrets.
"I really wouldn't get into the assessment of what the situation will be now. We all have the same information and know what is happening. Now we just need to be realistic and behave in accordance with the real situation," said Vidović.