High Representative imposes decision to protect Bosnia’s key state institutions

According to information obtained by N1, Schmidt’s decision comes in the context of the failure to adopt the 2025 state budget, the continued use of temporary financing, and the expiration of deadlines for the preparation of the 2026 General Elections.

Below is the full text of the High Representative's decision:

This decision addresses urgent technical and legal issues arising from the failure to adopt the state budget for 2025, the continuation of temporary financing, and the expiration of deadlines for preparing the 2026 General Elections, enabling the resolution of outstanding debts owed by Republika Srpska to the company Viaduct, which pose a direct risk to key state institutions, including the Central Bank of Bosnia and Herzegovina and the Bosnia and Herzegovina Air Navigation Services Agency (BHANSA).

The High Representative’s decision does not directly concern the delayed 2025 budget; its drafting and adoption remain the responsibility of BiH institutions. However, this decision removes political and legal obstacles in a situation where the BiH Treasury and the Council of Ministers were unable to make substantial progress, focusing instead on two urgent issues: settling the debt to Viaduct and distributing Central Bank profits.

Part of the blocked reserve for revenue settlement from road tolls, specifically 120 million Bosnian marks (approximately €61.3 million) out of a total of around 316 million marks (approximately €161.4 million), will be allocated to the Treasury for settling Viaduct’s claims. It is assumed that this amount represents Republika Srpska’s share in the settlement reserve. This respects the principle that “those who incur the debt should pay it” and ensures that Republika Srpska’s debt is not unfairly transferred to the state level. Republika Srpska acknowledged these obligations in 2017 through a signed agreement by then-Prime Minister Zeljka Cvijanovic, but failed to fulfil them, allowing the debt to accumulate over time. The decision further ensures that RS budget funds, such as those for salaries and pensions, are not used for the settlement with Viaduct.

An equivalent amount from the settlement reserve will be made available to the Federation of Bosnia and Herzegovina.

The decision halts enforcement measures against the Central Bank and BHANSA, specifically asset and fund seizures, thereby protecting the integrity of these institutions and restoring their functionality.

This decision also enables the use of Central Bank profits to finance the procurement of key technology for the Central Election Commission. The profits are unblocked by this decision, and the funds will significantly contribute to the integrity and transparency of the 2026 General Elections. These funds were originally intended to be included in the 2025 budget.

The High Representative calls on authorities at all levels to take responsibility, adopt the state budget without further delay, and demonstrate a commitment to a stable, functional, and prosperous Bosnia and Herzegovina.