Controversial draft budget would use BiH Central Bank profits to pay RS debt

Despite opposition from Bosniak ministers Elmedin Konakovic and Sevlid Hurtic, the proposal, put forward by Finance Minister Srdjan Amidzic (SNSD), passed at the ministerial level and will now be forwarded to the Presidency and the Parliamentary Assembly. However, the plan faces strong resistance and is unlikely to be adopted in its current form.

The proposal foresees withdrawing 200 million marks (€102 million) from the Central Bank. After settling the Viaduct debt, the remaining 90 million marks (€46 million) would be divided between the entities, with the Federation receiving 59 million marks (€30.1 million) and Republika Srpska 29 million marks (€14.8 million).

Critics argue the burden unfairly falls on the Federation’s budget, given that the original debt stems from a broken concession agreement between the RS government and Viaduct, for which an international arbitration tribunal ruled in the company’s favour. Daily interest on the debt now exceeds 18,000 marks (€9,000).

The dispute has already impacted state institutions. Bosnia’s air traffic control (BHANSA) risks losing EU airspace revenues, and the Central Bank has received a formal asset seizure notice from the Mostar Municipal Court.

Absent from the session were ministers Edin Forto and Zukan Helez, currently on a visit to the US.