SARAJEVO, April 15 Bosnia's cash-strapped
autonomous Bosniak-Croat Federation raised 15 million Bosnian
marka ($10.6 million) in a six-month treasury bill auction on
Tuesday to pay maturing debt, the region's finance minister
"The auction proceeded in a satisfactory manner," Ante
Krajina told a news conference. He said the average yield
remained stable from the last auction on April 1 at 0.81
Investors placed bids for 49.3 million marka worth of
treasury bills against 15 million marka on offer, and Krajina
said that his ministry planned to organise regular bi-monthly
T-bill auctions to secure budget liquidity.
The Federation plans to issue 260 million marka worth of
T-bills and 50 million marka worth of bonds this year to fill
the budget deficit planned at 661 million marka, created due to
loans for infrastructure projects by public companies, Krajina
The Federation had planned to plug the remaining budget gap
of 350 million marka with funds from the International Monetary
Fund and the World Bank but the IMF in February froze the
disbursement of funds under its 385 million euro ($531.90
million) standby loan.
The funds have been halted over the failure of Bosnia's two
regions, the Federation and the Serb Republic, to implement
economic measures agreed under the loan deal.
The Serb Republic says the IMF terms are too strict and that
it has secured an alternative Russian commercial loan, the terms
of which have not been disclosed.
Krajina said the Federation was still counting on IMF cash
but was also pondering a "Plan B", without elaborating.
The Federation will issue 20 million marka worth of
six-month T-bills on May 6.
($1= 1.414 Bosnian marka)
($1 = 0.7238 Euros)
(Reporting by Daria Sito-Sucic; Editing by Matt Robinson)