Page 112 - bne IntelliNews Southeastern Europe Outlook 2025

budgets for 2021 and 2022. The €650mn, 10-year sovereign Eurobond was issued with a coupon of 3.50%, down from 3.625% on the previous Eurobond.
The government’s goal is to reduce the debt-to-GDP ratio to 55.8% in 2025, down from 56.3% in 2024, and further to 48% by 2031. The 2025 budget has the objective of achieving a primary surplus, which will serve as a buffer for fiscal stability, the finance minister has said.
Albania’s recent credit upgrades reflect international recognition of its fiscal discipline. In 2023, Standard & Poor’s upgraded Albania from “B positive” to “BB stable” and Moody’s recently raised the country to “Ba3 stable”.
6.2 Budget and Debt – Bosnia & Herzegovina
Neither the state-level government, nor that of the Federation, have yet adopted their budgets for 2025. That has become a usual practice over the past several years and the authorities operate using their budgets for the previous year until politicians adopt the new ones.
In December, Republika Srpska adopted its budget for 2025, setting spending at BAM6.07bn (€3.1bn), up by 4.5% from 2024.
The parliament also adopted a programme of economic reforms that covers areas such as economic growth, digitalisation, public enterprise reform, health and social policy, and demographic renewal. The aim of these measures is to improve the fiscal and economic position of Republika Srpska.
The parliament also adopted the entity’s plan for borrowing this year, as well for issuing state guarantees.
Central bank data showed that the Bosnian government sector’s foreign debt decreased by 2.3% y/y to BAM8.71bn (€4.45bn) in the second quarter of 2024.
The country’s debt to the EIB rose by 8.9% y/y to BAM2.35bn, while that to the EBRD moved down by 0.3% y/y to BAM1.09bn. The government sector's liabilities to the World Bank’s IBRD grew 15% y/y to BAM1.38bn, while the debt to the World Bank’s IDA declined 15.6% y/y to BAM1.04bn.
The debt to the IMF fell by 36.1% y/y to BAM484.3mn, while liabilities to the European Commission remained unchanged y/y at BAM244.48mn.
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