Transition, Vol. 26 No. 53, 2025.
Review article
ANALYSIS OF PUBLIC DEBT AND FISCAL SUSTAINABILITY OF BOSNIA AND HERZEGOVINA
Jasmina Hurić
Abstract
This paper researches one of the most current topics in the domain of the economic policy of
Bosnia and Herzegovina (BiH), i.e. the matter of public debt and fiscal sustainability. The
paper presents the theoretical framework of indebtedness and fiscal sustainability, referring to
standard indicators of stability of public debt, indicators of fiscal vulnerability, maturity and
currency structure of external debt, and external solvency and liquidity, including indicators
of the flow and status of external debt and fiscal vulnerability. After the theoretical part, all
the mentioned indicators for Bosnia and Herzegovina were analyzed over a prolonged period
of time. The results of the analysis indicated an unfavorable trend in the movement of many
indicators of indebtedness and fiscal sustainability in reference to the state and movement of
the most important correlated macroeconomic indicators. At the end of the analysis, certain recommendations and conclusions were provided which refer to the fact that the goals in
defining new indebtedness strategies should consist of directing the public debt exclusively to
those areas that will contribute to the development of the state and the achievement and
preservation of the fiscal sustainability of BiH.
Keywords
public; external and internal debt; fiscal sustainability; indicators of fiscal stability; Bosnia and Herzegovina
Hrčak ID:
336262
URI
Publication date:
6.10.2025.
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