Legislation on Public Debt in Bosnia and Herzegovina and the European Values Cover Image

Правна регулатива јавног дуга у Босни и Херцеговини и европске вриједности
Legislation on Public Debt in Bosnia and Herzegovina and the European Values

Author(s): Miroljub Krunić
Subject(s): Law, Constitution, Jurisprudence, Law on Economics, Public Finances
Published by: Правни факултет Универзитета у Источном Сарајеву
Keywords: Public debt;External debt;State aid;Economic growth;Single market;Rule of law;
Summary/Abstract: Bosnia and Herzegovina signed the Stabilization and Association Agreement with the European Union and its members on 16 June 2008, thereby assuming the obligation to establish the rule of law as one of the key objectives, as well as agreeing to a six-year transition period.Within the domain of the system of regulations that allow sovereign lending, this entailed a complete adaptation to the EU acquis communautaire, and the establishment of a mechanism of full public debt management. A particular challenge for the country was the issuance of sovereign guarantees for undertaken obligations, including a state aid guarantee, which necessarily should be compatible with the internal and single market. This was to promote economic and social progress in a balanced and sustainable way, and to remove barriers that kept the market division within the country and its isolation from the markets of the countries of the community.The current state of the legislation regarding external and internal debt as well as its application in Bosnia and Herzegovina point to significant deviations from the desired goals and endanger the sustainability of the country’s economic growth.