The Federal Ministry of Finance announced two public calls for long-term credit debt of the Federation of Bosnia and Herzegovina in the total amount of 100 million KM.
It is about the second and third tranches of the loan, each of which amounts to 50 million KM. The funds are intended to finance the construction of highways, expressways, highways and other roads covered by the Capital Transfer Program of the Federal Ministry of Transport and Communications.
The budget of the Federation of Bosnia and Herzegovina for 2026 has planned a total of 150 million KM of domestic long-term debt for this purpose. The Ministry decided to secure funds in three tranches of 50 million KM each, in accordance with the dynamics of the implementation of approved road projects. The first public invitation was published in March, while the current invitations refer to the remaining two tranches.
Repayment for ten years with a fixed interest rate
Both loans are contracted for a period of ten years, including a grace period of 12 months. The interest rate must be fixed, and the principal will be repaid in 18 equal half-yearly installments.
Loans will be approved in convertible marks, with or without a currency clause in euros, depending on the bank’s offer. There are no fees for loan processing, early repayment or any other additional fees. The funds will be paid once to the Unified Account of the Treasury of the Federation of Bosnia and Herzegovina.
Banks based in Bosnia and Herzegovina that have a license from the Banking Agency of the Federation of Bosnia and Herzegovina or the Banking Agency of the Republic of Srpska can apply for public calls.
Offers until the end of August and beginning of September
For the second tranche, bids can be submitted until August 28, 2026 at 12 noon, while the public opening of bids is scheduled for the same day at 1 p.m. The planned loan disbursement date is September 30, 2026, and repayment should begin on March 30, 2028.
The deadline for submitting bids for the third tranche is September 11, 2026 until 12 noon. The payment of that loan is planned for October 15, 2026, and the beginning of repayment for April 15, 2028.
The main criterion for choosing the most favorable bank will be the lowest interest rate offered. The final conclusion of the loan agreement is conditioned by the consent of the Government of the Federation of Bosnia and Herzegovina, it says Factor.
