The Government of the Federation responsibly manages public finances and regularly fulfills financial obligations. With the narrative about debt, the opposition is trying to create political panic about a process that is completely normal and standard in all serious economies, said the Prime Minister of the Federation of Bosnia and Herzegovina, Nermin Nikšić.
He points out that assignments are not done in secret. They are planned and provided for in the Budget of the Federation of BiH, which was adopted in both houses of the Parliament.
“That is why it is difficult to take seriously the political dramatization of those who participated in that process, and today they try to present every show as a sign of crisis or collapse of the system. Citizens should be told clearly that indebtedness is not a ‘disappearance of money’, but a tool used by all states to properly fulfill their obligations and invest in development,” said Nikšić.
The Federation of Bosnia and Herzegovina, as he emphasized, properly fulfills its obligations, pays pensions, social benefits, transfers and support to lower levels of government. The Government of the Federation of Bosnia and Herzegovina takes care to preserve financial stability and to protect the domestic economy, economy and investments.
Nikšić adds that it is important to emphasize that international financial institutions and investors see the Federation of Bosnia and Herzegovina as a stable and reliable partner.
“The capital market does not react to political spins and announcements, but to specific fiscal indicators, the ability to repay obligations and the stability of the system. The Federation of BiH remains among the least indebted in the region and Europe. That is why it is important to distinguish responsible debt management from populism. The Federation of BiH has a lower level of public debt than most countries of the European Union and the region, which would certainly not be the case if the Government were to borrow irresponsibly and uncontrollably,” says the federal prime minister.
When it comes to credit rating, he points out how important it is to speak precisely and truthfully. Standard & Poor’s did not lower the credit rating of the Federation of Bosnia and Herzegovina. The credit rating remained B+/B, while only the outlook was changed, which simply represents a warning of possible risks in the coming period. For example, S&P warned that 70 percent of the budget is allocated to pensions and social benefits.
“We were aware of the risks, and this very warning shows that this government did not save on pensioners, veterans and socially vulnerable citizens, but decided to protect and improve their living standards. It is equally important to say what S&P did not say. And unfortunately for the opposition, it did not say that the Federation was on the verge of bankruptcy. It did not question the ability to pay back debts. It did not say that the Federation does not have access to international financial markets. On the contrary, it was confirmed that the Federation of BiH can properly service its obligations and maintain financial stability.” says Nikšić.
He states that it was this Government that secured the international credit rating for the Federation of Bosnia and Herzegovina for the first time. This, as he assessed, is an important financial and institutional step forward and proof that the Federation of Bosnia and Herzegovina has become a serious and recognized partner on the international financial market.
“And while the opposition tries to spread fear and dramatization, the Government of the Federation of Bosnia and Herzegovina will continue to lead a responsible economic policy. The focus remains on stability, regular payments, protection of citizens, investments and development. Those who are used to working will work. In the absence of arguments, they have no choice but to talk, spin and try to deceive citizens with lies,” said Nikšić, Fena news agency writes.