#1Bosnia and Herzegovina Ministry of Finance and Treasury QUARTERLY OVERVIEW * OF PUBLIC DEBT OF BOSNIA AND HERZEGOVINA Third quarter of 2020 Sarajevo, November 2020#2Content Introduction. BiH public debt outstanding. BiH public debt and BiH public debt-to-GDP ratio movements BiH public debt by holders of obligation and borrowing method-Q3 2020... Debt indicators 3 4 5 6 7 2#3Introduction Based on the available data¹, the Ministry of Finance and Treasury of Bosnia and Herzegovina (MFT BiH) prepared the Quarterly Overview of Public Debt of Bosnia and Herzegovina (hereinafter referred to as: "the Quarterly Overview") for the third quarter of 2020 (hereinafter referred to as: "Q3 2020") pertaining to the period from 1 July 2020 to 30 September 2020 and representing the state and structure of BiH public debt at the end of this quarter. The Quarterly Overview encompasses the following segments: BiH public debt outstanding and BiH public debt-to-GDP ratio movements over the period, BiH public debt by holders of obligation and borrowing method and debt indicators. The terms used in the Quarterly Overview, in accordance with definitions determined in the Law on Borrowing, Debt and Guarantees of Bosnia and Herzegovina, Article 3 - Definitions (Official Gazette of Bosnia and Herzegovina, 52/05, 103/09 and 90/16) (hereinafter referred to as: "BiH Law on Borrowing"), shall have the following meanings: State debt: debt denominated in domestic currency, the borrower of which is MFT BiH on behalf of BiH. External state debt: state debt created in accordance with an international agreement. Debt created between 2 April 1992 and 14 December 1995 shall not be deemed as the external state debt. Domestic state debt: State debt, excluding the external state debt. Debt of Entities and Brčko District BiH: debt denominated in domestic currency, the borrower of which, directly or indirectly, is the Ministry of Finance of the Entity on behalf of Entity /BD BiH Finance Directorate on behalf of BD BiH. External debt of Entities and BD BiH: debt of Entities or BD BiH under an international agreement concluded in accordance with the procedures defined by the BiH Law on Borrowing. Domestic debt of Entities and BD BiH: debt of Entities or BD BiH, excluding external debt of Entities or BD BiH. Other terms used²: BiH public debt: aggregate of BiH external and domestic debt. BiH external debt: debt including external state debt, external debt of Entities and external debt of local government units. Debt of local government: debt of the local government units under an international agreement concluded directly between the local government unit and the creditor, directly serviced by the local government unit. BiH domestic debt³: includes the domestic state debt, domestic debt of Entities and BD BiH, domestic debt of cantons, cities, municipalities, funds and public enterprises. 1 2 Data on BiH public debt for Q2 and Q3 2020 are preliminary. Data on domestic debt are based on data submitted to the Ministry of Finance and Treasury of Bosnia and Herzegovina by the Entities and the Brčko District of Bosnia and Herzegovina (BD BiH). 3 The terms are used for the purpose of preparation of the Quarterly Overview, for the purpose of uniformity and simplicity of data presentation. Domestic state debt is currently non-existent, i.e. BiH domestic debt comprises: domestic debt of Entities and BD BiH, domestic debt of cantons, cities, municipalities, social security funds of Republika Srpska and domestic debt of public enterprises in the Federation of Bosnia and Herzegovina. 3#4BiH public debt outstanding (in million BAM) 2015. 2016. 2017. 2018. 2019. Q1 2020. Q2 2020. Q3 2020. BiH domestic debt Republika Srpska 2,265.03 2,272.64 Federation of BiH 1,263.55 1,273.87 2,002.53 1,148.50 1,815.36 1,083.39 1,973.01 1,093.07 2,073.62 1,124.14 2,284.23 1,224.16 2,292.86 1,310.54 Brčko District 9.45 4.11 3.56 2.98 2.39 BiH institutions 0.00 0.00 0.00 0.00 0.00 2.18 0.00 2.08 1.87 0.00 0.00 Total 3,538.03 3,550.62 3,154.59 2,901.73 3,068.47 3,199.94 3,510.47 3,605.27 BiH external debt Republika Srpska 3,015.56 3,172.17 2,954.12 3,365.74 3,409.94 3,413.12 3,588.68 3,553.90 Federation of BiH 5,318.67 5,296.17 4,787.07 4,715.58 4,610.17 4,598.31 4,954.59 4,955.61 Brčko District 21.06 25.10 36.72 49.64 53.61 50.16 55.76 52.21 BiH institutions 55.78 54.15 75.04 73.95 Total 8,411.07 8,547.59 7,852.95 8,204.91 69.05 8,142.77 68.14 65.72 63.11 8,129.73 8,664.75 8,624.83 BiH public debt Republika Srpska 5,280.59 5,444.81 4,956.65 Federation of BiH 6,582.22 6,570.04 5,935.57 Brčko District 30.51 BiH institutions 55.78 Total 11,949.10 29.21 54.15 12,098.21 40.28 75.04 11,007.54 5,181.10 5,798.97 52.62 73.95 11,106.64 5,382.95 5,703.24 5,486.74 5,872.91 5,846.76 5,722.45 6,178.75 6,266.15 56.00 69.05 11,211.24 52.34 68.14 11,329.67 57.84 65.72 12,175.22 54.08 63.11 12,230.10 4#5Millions BAM 14.000,00 12.000,00 10.000,00 8.000,00 6.000,00 4.000,00 2.000,00 BiH public debt and BiH public debt-to-GDP ratio movements 45,00% 40,00% 35,00% 30,00% 25,00% 20,00% 15,00% 10,00% 5,00% 0,00 0,00% 2015. 2016. 2017. 2018. 2019. Q1 2020. Q2 2020. Q3 2020. I BiH Public Debt BiH Public Debt (%GDP) 5 % GDP#6Federation of BiH 51,23% BiH public debt by holders of obligation and borrowing method-Q3 2020 BiH public debt by holders of obligation - 30 September 2020 Brčko District. 0,44% BiH Institutions 0,52% Republika Srpska ,47,81% 6 BiH external debt 70,52% BiH public debt by borrowing method - 30 September 2020 BiH domestic debt 29,48%#7Debt indicators 2015. 2016. 4 GDP (in million BAM) 29,727.10 2017. 2018. 31,047.90 32,601.50 34,264.40 2019. 35,752.60 Q1 2020. Q2 2020. Q3 2020. 34,644.00 34,644.00 34,644.00 11,949.10 BiH public debt (in million BAM) 12,098.21 11,007.54 11,106.64 11,211.24 11,329.67 12,175.22 12,230.10 BiH external debt (in million BAM) 8,411.07 8,547.59 7,852.95 8,204.91 8,142.77 8,129.73 8,664.75 8,624.83 BiH domestic debt (in million BAM) Export of goods and services 3,538.03 3,550.62 3,154.59 2,901.73 3,068.47 3,199.94 3,510.47 3,605.27 9,969.31 10,659.83 12,811.10 14,087.20 14,110.59 12,561.00 12,561.00 12,561.00 (in million BAM) 40.20% 38.97% 33.76% 32.41% 31.36% 32.70% 35.14% 35.30% BiH public debt /GDP (%) BiH external debt /GDP (%) 28.29% 27.53% 24.09% 23.95% 22.78% 23.47% 25.01% 24.90% 11.90% 11.44% 9.68% 8.47% 8.58% 9.24% 10.13% 10.41% BiH domestic debt /GDP (%) BiH external debt/export of goods and services (%) 84.37% 80.19% 61.30% 58.24% 57.71% 64.72% 68.98% 68.66% 4 Source: The Agency for Statistics of BiH, Gross domestic product-expenditure method, published on 30 September 2019 for the 2015-2016 period and published on October 02, 2020 for the 2017-2019 period; Directorate for Economic Planning, Budget Framework Document, Macroeconomic projections 2018-2023, September 2020, for the 2020. 5 Source: The Agency for Statistics of BiH, Gross domestic product-expenditure method, published on 30 September 2019 for the 2015-2016 period and published on October 02, 2020 for the 2017-2019 period; Directorate for Economic Planning, Budget Framework Document, Macroeconomic projections 2018-2023, September 2020, for the 2020. 7