Russian debt payoff will help BiH entities budgets

Russian debt payoff will help BiH entities budgets

Banja Luka, April 13, 2016/Independent Balkan News Agency

By Mladen Dragojlovic

RS Government announced on Wednesday that, in the case of “further politicization of evidently good intentions of the Government of the Russian Federation” to pay the debt to BiH entity budgets, it will make the appropriate conclusions and inform the Ministry of Finance of the Russian Federation about these occurrences.

The entity Government said that this Russian Federation act is aimed at helping citizens in both entities and that it is not appropriate to involve politics in this case. They expressed their deep appreciation to the Russian Government which decided to payoff the old clearing debt towards BiH in cash rather than in goods, as was the case with other countries from the former Yugoslavia. The RS Government in a statement said that the decision of the Russian Government is more for respect, taking into account the economic and financial challenges of the Russian Federation itself.

In accordance with the letter of the BiH Ministry of Finance and Treasury, the RS Government reminds that on the session on March 31 it its gave approval for debt payments at a ratio of 1/3 for the RS and 2/3 for the Federation of BiH, as was proposed by the Government of the Russian Federation. This formula is also the formula which was used by the international financial organizations for BiH. It means that the RS budget will receive significant income in the amount of about 70 million.

“The RS Government expressed its deep regret that the BiH Minister of Foreign Trade and Economic Relations, Mirko Sarovic, with his statements in the media discredits the good intentions of the Russian Federation. We strongly condemn his statement in which he is announcing the blockade of funds from the Russian Federation to be payd to the entities’ budgets”, announced the RS Government.

This institution emphasizes that such action would make enormous material damage to citizens. The RS Government recalls that a decision on the modalities of payoff of the clearing debt weights only the Government of the Russian Federation, not individual ministries in the BiH Council of Ministers, “especially not the Minister of Foreign Trade and Economic Relations”.

The entity Government demands from the Minister Sarovic to issue a formal apology to the Government of the Russian Federation, “because the good intentions of the Russian government to help the citizens was, in the most radical way, belittled”.

The RS Government again expressed its firm commitment in the improvement of cooperation with the Russian Federation at all fields, and once again expressed gratitude for the consistent commitment of the Russian Federation to preserve the strict implementation of the Dayton Peace Agreement. The Government statement said that “representatives of some political parties from RS in institutions at state level, in the past has repeatedly been trying to block funds for the budget of the RS, including funds from profit from public enterprise “Elektroprenos BiH”.

These conclusions of the RS Government will be submitted to the Embassy of the Russian Federation.