Archive of Journal - Financing

Financing – scientific magazine for economy

ISSUE 2019, No. 1, Article 2, Year of publication: 10, March, 2019

The Analysis of the Companies Funding Sources on the Banja Luka Stock Exchange


Perica Rajčević, PhD*; Miloš Grujić, PhD**

*Water utility company in Banja Luka,
**The Pension Reserve Fund Of Republic of Srpska



The aim of the research is to address the challenges that may be a constraint on economic growth and development. In the research, we used the relevant literature and acts that were in front of the delegates in the parliaments of the Bosnia and Herzegovina. The main research question is: “What are the main characteristics of the Bosnia and Herzegovina’s debt?” In line with this, the methods employed in this paper are the analysis and synthesis of previous researchs, theoretical findings and publicly accessible documents pertaining to the debt of Bosnia and Herzegovina’s, and an overview of the case studies. The contribution of the paper is reflected in the explained wideness and the possibilities of using different sources of money, and the limits on which the debts can be used in order to achieve sustainability tasks. In line with the presented evidence, priority should be given to projects that would be financed by advantageous credit arrangements and to rationalize public spending. Despite the usual opinion, we have proven that the debt of the Bosnia and Herzegovina is sustainable – the average interest rate is lower than the GDP growth rate and that, although unpopular, the currency board system corresponds to the position of Bosnia and Herzegovina ie it has fully met expectations regarding a firm budget constraint. However, we have pointed out the danger of stereotype that the public debt of less than 60% GDP necessarily indicates that the country is in a good position.

Keywords: public debt, external debt, debt structure, indebtedness.

DOI: DOI: 10.7251/FIN1901027G

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