The Republic of Srpska and Russia negotiate a loan ,that would pay off earlier loans, says the Minister of Finance, Zoran Tegeltija.

Public debt of  RS amounted to four billion and 700 million kuna at the end of 2012.  (two billion and 400 million euros), it was said by the information on the public debt, which considered the RS parliament.

Tegeltija said that the share of public debt in gross domestic product (GDP) amounted to 53.69 percent, which is at the  level of  moderately indebted countries.

Opposition parties, however, warned that the RS is indebted.

Tegeltija confirmed that the RS may soon borrow  from Russia, they negotiating the Russian  loan in order to pay off earlier loans.
RS could borrow from Russia  half a billion marks.

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“We are negotiating with the Russian government on some loan funds,” said Tegeltija, stating that they  do not negotiate how to get a loan of 500 million and create new debt, but that, if in the case of favorable conditions, refinance any of previous adverse credit as well as some of the bonds and loans coming due.

He said that the RS arrangement with the IMF, “gives credibility with other financial institutions ” and that public finances would be in even better  situation if there was  an agreement with another country that could act as guarantor for the loan.

The Minister of Finance has said that  he is “proud” of the fact that the RS is indebted  with 19 lenders.

“I wish we had 119 lenders. That  is a sign that you have support and the best support is  to get loans from those governments,” said Tegeltija.