SARAJEVO, April 18 (Reuters) - Bosnia’s autonomous Serb Republic said on Tuesday it would issue a five-year domestic bond worth 50 million marka ($27.2 million) on May 3, increasing the amount previously planned to finance maturing debt due to the delay in release of IMF cash.
The region had announced the auction of a seven-year domestic bond worth 35 million marka on May 3 but it changed the terms of the issue after the International Monetary Fund halted disbursements under its 553 million euro ($589.11 million) aid programme for Bosnia because of reform delays
The sale will be carried out through the Banja Luka Stock Exchange (BLSE), the region’s finance ministry said in a statement. The paper will have a fixed annual interest rate of 3.5 percent.
Bosnia’s two regions, the Serb Republic and the Bosniak-Croat Federation, need the IMF money to cover their respective budget gaps and to finance maturing debt.
The lender has already paid out 79.2 million euros. But to access the next tranche of 80 million euros, Bosnia must pass a law raising excise taxes and four other economic measures. ($1 = 0.9387 euros) ($1 = 1.84 Bosnian marka) (Reporting by Daria Sito-Sucic; Editing by Jeremy Gaunt)