DODIK: WE ENTERED EUROBOND ISSUANCE COURAGEOUSLY

BANJA LUKA, MARCH 27 /SRNA/ – SNSD leader Milorad Dodik says Republika Srpska’s borrowing of EUR 500 million on the London Stock Exchange had been planned last year, adding that the entry into the eurobond issuance was done very courageously.

"Yesterday was a good day for Republika Srpska. It is the finale of what we planned at the end of last year when we very ambitiously announced increases in salaries, the veteran allowance and pensions. At that time we said that the April salary for budget users would be increased by five percent," Dodik said in SRNA interview. He emphasized that at that time global disruptions threatening even stronger economies than that of Republika Srpska had not been taken into account. "Everyone who follows the situation can notice that 2026 Republika Srpska budget planned that current obligations would be covered through external borrowing so that local banks would not be burdened," Dodik said. He noted that Republika Srpska received an offer that was almost twice as high. "There was interest in purchasing our bonds of around EUR 1.1 billion, while we issued EUR 500 million. That made us credible enough to discuss lowering the interest rate, which remained fixed for the next five years," Dodik said. According to him, everything is based on budgetary and other policies that should ensure stable inflows and revenues. "We are trying to respond through a series of measures. Sometimes some influences cannot be taken into account, because not everything depends on us. Those who follow the situation can notice that the 2026 Republika Srpska budget planned that current obligations would be covered by trying to borrow externally to avoid burdening local banks and withdrawing money from them. We also have partners who will be interested in investing money in Republika Srpska," Dodik said.