
Bosnia and Herzegovina has executed a long-overdue international arbitration ruling in the “Viaduct case,” Deputy Minister of Finance and Treasury Muhamed Hasanovic announced Monday, describing it as a necessary move to uphold the rule of law and end months of political obstruction.
Hasanovic confirmed that he had signed two payment orders totalling 110.7 million Bosnian marks (approx. €56.5 million), in line with the final arbitration decision. One payment amounts to €51,388,046.69, and the other to $6,024,881.66.
“This decision had been deliberately blocked for months. Once again, we’re proving that the rule of law must not be held hostage to political games,” Hasanovic stated.
The payment marks the resolution of a years-long legal dispute stemming from a 2017 agreement signed by the Republika Srpska (RS) government, which later failed to honour its commitments, leading to international legal action and mounting financial penalties.
The Deputy Minister stressed that arbitration rulings are final and binding and that ignoring them risks sanctions, reputational damage, and additional financial liabilities for the state. “Delays only raise the cost of irresponsibility,” he warned.
The funds used for the payment did not come from the national institutions' budget and will not affect pensions, wages, or social services, Hasanovic clarified. Instead, the money was sourced from a special account at the Central Bank of BiH, containing road toll revenue owed to the RS entity. The use of this account was authorised under Articles 6 and 7 of the High Representative’s decision from July 17, 2025, and is restricted solely to settling this judgment.
The payment is being routed through Bank of America and processed by the Central Bank of BiH via Deutsche Bank, which is conducting all standard compliance and verification procedures.
Hasanovic also addressed attempts by RS officials to challenge the payment based on the recipient account being registered in Jersey, Channel Islands. He dismissed those objections as “legally groundless,” emphasising that Jersey operates under British jurisdiction and adheres to international AML and CFT standards.
The press release noted that additional enforcement costs claimed in ongoing proceedings in courts across BiH, as well as in Belgium and Luxembourg, would be considered only once final rulings are issued.
“This debt stems solely from the actions of RS authorities. Rather than meeting their obligation, they attempted to hide it, avoid responsibility, and stall, thereby increasing the damage,” Hasanovic said. He urged prosecutors to investigate who enabled this prolonged inaction.
“Signing an agreement isn’t bravery. Taking responsibility for obligations your government creates, that’s real courage,” he added.
Hasanovic concluded by calling on the Office of the Attorney General of BiH to immediately act to suspend all enforcement procedures against state assets and interests, including the Central Bank and BHANSA, the country’s air navigation agency.
“This is not a political issue, it’s a legal obligation. A state that does not respect the law ceases to function as a state. Those who disregard the legal order have no place in government,” he stated.
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