Bakić: The debt of FBiH per capita is almost twice as low as that of the other entity

“At the end of 2022, the share of the public debt of the Federation of BiH about the achieved GDP from 2021 is 25.66 percent, and about the estimated GDP for 2022, it is about 23.22 percent, which is significantly lower than the share of public debt RS, which is about 43 percent. As a result of the above, at the end of 2022, the indebtedness of the Federation of BiH per capita is 2,986 KM, and that of Republika Srpska is 5,633 KM,” Bakić said.

The GDP in the Federation of BiH is twice as high as that in the other entity. Official data shows that the GDP for 2021 in the FBiH amounted to 25.2 billion KM and in the RS 12.5 billion KM. According to Bakić, the estimate is that the GDP for 2022 in the FBiH amounted to 28.62 billion KM, and in the RS 14.24 billion KM.

“In the structure of the public debt of BiH, the participation of the FBiH is 50 percent, the RS 49 percent, and the remaining one percent refers to the public debt of the institutions of BiH and the Brčko District. Although at the end of 2022, the FBiH and the RS had an almost identical nominal amount of public debt, due to the significantly higher GDP in the FBiH compared to the GDP in the other entity, the real indebtedness of the FBiH is significantly lower compared to the RS,” explained Bakić.

He also explained that many factors affect the credit rating of Bosnia and Herzegovina.

“One of them is certainly the state of public finances, that is, the level and structure of the country's public debt. Stable public finances of the Federation of Bosnia and Herzegovina, along with a low level, and a good maturity and interest structure of the public debt have a positive effect on the preservation of the credit rating of Bosnia and Herzegovina,” emphasized the FBiH Assistant Minister of Finance for Debt Management, Samir Bakić, in an interview with FENA.

(FENA) A. B.

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