Republika Srpska paves the way for state guarantees on 68 million KM in loans to Elektroprivreda RS

The Government of Republika Srpska, meeting in Banja Luka on 5 November for its 34th session, took two decisions on financing for the Trebinje-based Elektroprivreda Republike Srpske (ERS) group, according to the official statement. In total, the loans amount to 68 million convertible marks (KM), or about 34.8 million euros.

What was decided. The government approved the issuance of a Republika Srpska guarantee for an 18 million KM loan that the Mine and Thermal Power Plant (RiTE) Ugljevik will take from a commercial bank; the money is intended to finance a capital investment. Separately, the government took note of the ERS parent company’s initiative for a state guarantee and consented to a 50 million KM loan, the purpose of which is governed by Article 42 of the Republika Srpska Law on Borrowing, Debt and Guarantees. ERS will submit the guarantee request after completing the loan procurement procedure.

What the press says. The Capital portal notes that the government did not specify the purpose of the parent company’s loan and estimates that, with it, the loans taken by ERS this year alone are approaching 200 million KM. Capital also recalls a recent 5 million KM loan from the factoring firm Big faktor. Nezavisne novine writes that the financing for RiTE Ugljevik is aimed at continuing the modernisation of production capacity.

Context. ERS ended 2025 with a loss of 56 million KM (28.6 million euros), CEO Luka Petrović said in April, as quoted by Balkan Green Energy News; the company bought electricity at prices higher than those at which it sells it, and output from hydropower plants and the Gacko and Ugljevik thermal plants fell. The Ugljevik thermal power plant shut down again on 5 November because of a boiler fault.

Real-time data for the country are on the country page