PUBLIC DEBT AS A DETERMINANT OF THE CONVERGENCE OF BOSNIA AND HERZEGOVINA IN THE EU ACCESSION PROCESS

Abstract

The debt crisis, as one of the significant causes of disruptions in economies, is no longer reserved only for underdeveloped and developing countries, but it is a global economic problem that we are currently witnessing. The concept of debt crisis stems from excessive borrowing, which, by its increase, causes negative economic consequences. The realized deficit of transition countries over the past decade has had a significant impact on the increase in public sector debt, and these countries are faced with the great challenge of consolidating public finances and trying to reduce public debt while preserving economic growth. This paper provides an analysis of the state of the public debt of Bosnia and Herzegovina and its implications for the economy, which, with its movement and inadequate structure, causes negative economic consequences, making the process of convergence in the EU more difficult.