The Republic of Srpska Securities Commission used the Electoral Assembly of the Federation of Municipalities and Cities of the Federation of Bosnia and Herzegovina to present “Opportunities of local communities in financial markets”, positioning securities issuance and investment as alternative funding sources for local public needs. The Commission highlighted its earlier initiative to amend the Law on Investment of Public Funds to allow municipalities and cities to invest surplus funds in bonds issued by other municipalities, as a mechanism to support infrastructure financing and budget deficit funding. It also pointed to bonds as potentially lower-cost and more flexible than bank borrowing, with terms that can be tailored on size, maturity, interest rate and payment dynamics, and said it will support potential issuers and investors on the legal framework and its application. Alongside the public-funds initiative, the Commission noted it has submitted proposals to competent ministries to amend several related laws, including legislation on the securities market, pension funds, multilateral compensation and liquidity management, and companies, to establish preconditions for capital market development.

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