Capital Market in Bosnia and Herzegovina: Unused Potential as Alternative Source of Financing

Capital Market in Bosnia and Herzegovina: Unused Potential as Alternative Source of Financing

KURBEGOVIC, Tarik

One of the most important factors of conducting business successfully and also in achieving the interests of the owner of entity is adequate structuring of source of financing of company or institution. Debt as a source of financing has its advantages in terms of potential of increasing of wealth for the owner of capital. On the other side, debt alone as source of finance can be realized on a several ways, where plenty of factors influence that choice. In the past few years in Bosnia and Herzegovina (BiH), the possibility of finance big infrastructural projects through emission of debt securities has been often mentioned. Until now neither of these projects has been financed in this way. About this problematic can be spoken from many aspects such as: strategic decisions, limits concerning budget deficit, technical conductions, efficient managing of public debt and so further. These are the facts that we want to consider when we speak about capital market as alternative source of financing trying to reach the advantages and disadvantages of emission of debt securities including the possibilities, techniques and benefits of financing of infrastructural projects through bonds.

Article
PeerReviewed

International Burch University

2014-07-15

2406