Decision of the Government of Republika Srpska on the first issuance of retail bonds represents a quality and secure investment.
It is also an opportunity to attract new investors to the capital market. This was emphasized by panelists and participants of the investment conference “Fundamental 2025” in Banja Luka. Discussions also covered funds, market prospects, artificial intelligence, and cryptocurrencies.
Participating in the capital market. For many, this sounds like a “foreign language,” but in just six days, everyone will have the opportunity to become owners of savings bonds. Experts say – bonds are not to be feared. They were traded in our region even a hundred years ago.
“Our economy has already done this; stocks existed. However, we went through a period of amnesia when it comes to market-based economy, and the time has come to restore that memory,” said Dragana Garača, director of the brokerage and dealer company “Monet Broker” from Banja Luka.
“People here don’t have enough trust in the stock exchange, but the stock exchange is an ordinary thing. In the West, people normally invest every month, quarterly, depending on the person. They invest in funds, they invest in the stock market and grow their assets,” said Dragan Kajkut, representative of the Association for Investment Fund Management.
And not only that – they gain financial freedom. Srđan Amidžić says that this also means gaining freedom of decision-making, which is always a stumbling block when borrowing from global financiers.
“When we talk about those international financial institutions that we’ve so far taken for granted, such as the IMF, you had a situation where you could access funds, but you didn’t have the financial freedom to make decisions,” emphasized Srđan Amidžić, Minister of Finance in the Council of Ministers of BiH.
The risk of investing is virtually nonexistent, as these securities carry the designation of first-order payment. That is, bonds are paid from the budget first, before other obligations. Experts agree – the issuance of savings bonds is a good step toward bringing the capital market closer to citizens. The total amount of five million marks is not a massive influx for the Republika Srpska budget, but it is currently the safest, and with a 4.5 percent interest rate, the most profitable investment. Popularizing it is the primary goal.
“Citizens have already bought bonds before, those who were more informed. This project is targeted at the public,” said Ognjen Mihajlović, president of the Securities Commission of Republika Srpska.
“Quite favorable conditions when you look at bank interest rates currently in both Serbia and Republika Srpska and BiH. A two-year maturity is a relatively short period, meaning investors can be fairly confident in macroeconomic trends,” said Marko Janković, president of the Securities Commission of the Republic of Serbia.
The “Fundamental” conference in Banja Luka gathered around 200 participants from across the region. Alongside retail bonds, discussions were held on alternative investment funds, the regulatory framework, and digital currencies. The conference was opened by the Serb member and Chairwoman of the Presidency of BiH.
“The capital market is a dynamic environment, and of course we want to hear from the professionals, the people who are most qualified and ready to offer us certain solutions today. Naturally, events like this draw public attention, knowing that these are the answers being awaited not only by the business community but also by citizens,” emphasized Željka Cvijanović, Serb member and Chairwoman of the Presidency of BiH.
The “Fundamental” conference was organized by the Association of Investment Fund Management Companies and the Chamber of Commerce of Republika Srpska, under the patronage of the Office of the President of Republika Srpska and the Securities Commission.
Source: RTRS
