OPTIMALAN MODEL ZA IMPLEMENTACIJU MUNICIPALNIH OBVEZNICA U BOSNI I HERCEGOVINI / OPTIMAL MODEL FOR IMPLEMENTING MUNICIPAL BONDS IN BOSNIA AND HERZEGOVINA

Abstract

Implementation of Deiton Agreement brought to Bosnia and Herzegovina a numerous of special attributes in terms of political-fiscal decentralization, financial sources and fiscal autonomy. Also, current economic conditions provoked number of problems in terms of economic stagnation and budget deficit in Bosnia and Herzegovina. In newly created conditions, the problems of financing of local infrastructure projects are cumulated, while need for finding sound financial sources poses as a top priority. In this context, the financing of local communities in Bosnia and Herzegovina by issuing municipal bonds is the logic solution, bearing in mind experiences of developed and surrounding countries. This paper is just dedicated to the determination of optimal model for incurring of small and large (measured by the number of inhabitants) local communities in Bosnia and Herzegovina by issuing municipal bonds. Presented model provides a theoretical-methodological foundation for implementing municipal bonds in the system of financing of local communities. Also, optimal model suggests the establishment of Agency for economic development in small local communities to work as a sort of agent and coordinator of all the activities on the issuing and payoff municipal bonds.