The Government of the Federation of Bosnia and Herzegovina is planning a new long-term debt in the total amount of 150 million KM in order to finance the construction of road infrastructure, including highways, expressways and highways.
As announced by the Federal Ministry of Finance, the funds will be provided through three tranches of long-term loans, each in the amount of 50 million KM. Biznisinfo.ba.
The first tranche is already the subject of a public invitation sent to banks operating in Bosnia and Herzegovina.
According to the terms of the public call, the loan will have a repayment term of ten years, with a grace period of 12 months. The principal will be repaid in 18 equal half-yearly installments, while the interest will be paid twice a year – on June 15 and December 15.
The interest rate is a key factor
The interest rate should be fixed, and the key criterion for choosing the most favorable offer will be the interest rate. In the case of equal offers, the one submitted earlier will have priority.
Interestingly, the loan will not include additional costs such as processing fees or early repayment, which could increase the banking sector’s interest in participating in this process.
The funds are planned by the Budget of the Federation of Bosnia and Herzegovina for 2026 and are intended for capital transfers to public companies that implement infrastructure projects in the field of transport.
Part of a wider strategy
The deadline for submitting bids for the first loan tranche is May 15, 2026, after which their public opening and evaluation will follow.
The Ministry of Finance notes that the public invitation does not oblige institutions to accept any offer, and they reserve the right to reject all received offers without additional explanation.
Realization of this responsibility is part of a broader strategy for improving road infrastructure in the Federation of Bosnia and Herzegovina, which is one of the key prerequisites for economic development and attracting investments.
