Mostar Court orders asset seizure of BiH’s Central Bank in Viaduct debt dispute

The Central Bank of Bosnia and Herzegovina confirmed to N1 that it had received a court order from the Municipal Court in Mostar authorising the asset seizure. This action follows Viaduct’s successful arbitration ruling after the Republika Srpska (RS) entity government unilaterally terminated its contract.

However, the court ruling is not yet final, as an appeal process is underway.
“The Central Bank has received an enforcement order from the Municipal Court in Mostar regarding the asset seizure. In accordance with the law, we have filed a formal objection, and the process is still ongoing,” the bank stated.

Despite not being a party in the legal dispute nor holding contractual obligations toward Viaduct, the Central Bank expressed concern over the financial repercussions. Officials emphasised that they would utilise all legal avenues to protect their assets from undue damage.

Government warnings and further consequences

Foreign Minister Elmedin Konakovic confirmed that the asset seizure in Mostar had formally begun and warned that more properties—including those in Sarajevo and Banja Luka—could face similar measures.

“Theoretically, seized properties could be auctioned off at drastically lower prices, meaning a building worth 10 million Bosnian marks (approximately €5.1 million) might sell for only 2 million marks (approximately €1 million). The financial losses from this process could total hundreds of millions more than the current 110 million marks (approximately €56 million) owed to Viaduct,” Konakovic stated.

He noted that Bosnia and Herzegovina would ultimately seek reimbursement from Republika Srpska, given the contractual obligations and potential for a regression lawsuit.

Meanwhile, Bosnia’s Air Navigation Services Agency (BHANSA) is already experiencing financial turmoil. The European Organization for the Safety of Air Navigation (EUROCONTROL) has frozen its funds, forcing the agency to cut salaries. If the crisis is not resolved, the functionality of Bosnia’s airspace and airports could be severely impacted.