Elektroprivreda RS reports 56 million mark loss amid debt concerns

Elektroprivreda RS reported a loss of 56 million marks in the first half of the year, accompanied by multi-million mark debts. Reports indicate that investment loans, originally intended for capital projects such as new hydroelectric plants and the modernization of distribution networks, have instead been diverted to cover existing debts and pay the salaries of an excessive number of employees.

Economist and National Front President Jelena Trivić noted that the company would be unable to secure loans from commercial banks without guarantees from the Government of Republika Srpska. She warned that if the company fails to repay these credits, the financial burden would fall on the citizens of Republika Srpska rather than private owners. Trivić also suggested that political influence and interest groups have impacted the company's management structures.

Economist Zoran Pavlović questioned the lack of oversight from the government and relevant ministries regarding the company's long-term mismanagement. He highlighted the absence of a clear development strategy, noting that current investments, including those involving Chinese partnerships for hydroelectric plants, are not yielding expected results.