INDEBTEDNESS IN THE TIME OF THE COVID-19 PANDEMIC – CASE OF BOSNIA AND HERZEGOVINA

The COVID-19 pandemic is a global unprecedented event since the Spanish flu in 1918. IMF addressed this pandemic-caused economic fallout as worst crisis Great Depression. Entire continents are lockdowns just with essential services and activities. Unlike financial that derived from sector, shock real economy, both on demand supply side. During previous crisis, especially during most governments responded austerity measures fiscal consolidation. This time it different. Governments worldwide approved additional expenditures, tax cuts, government bond issuance borrowing order to mitigate consequences of looming crisis. One pandemic’s result dramatic increase indebtedness could affect efficiency monetary responses created before fight against sudden strong COVID-10 effects developing countries emerging markets, but also advanced already limited space. evoked again fear debt expanded number problems. Bosnia Herzegovina country complex state structure its own macroeconomic, political, institutional problems not spared negative pandemic. In save economy when recovery still swing, did emergency support economy. Increase spending addition reduced revenues have need for budget rebalance borrowing. aim work show macroeconomic situation EU countries, region well current problems, their reactions necessary cause indebtedness. Keywords: pandemic, indebtedness,