Schmidt explains new measures regarding Viaduct debt and election reforms in Bosnia

"For months now, I have observed the accumulation of serious problems. The key issue is the fact that Bosnia and Herzegovina still does not have a state budget for 2025. The absence of a budget limits the ability of state institutions to function properly. Among other things, this means that there are no funds available to implement electoral reforms, a key demand of the EU, the Dayton Agreement, and the OSCE," Schmidt warned.

He reminded the public that the BiH House of Representatives had adopted the feasibility study for the introduction of electoral technologies, but that no funds for this have been included in the draft budget.

Viaduct debt threatens key institutions

Schmidt gave special attention to the case of Viaduct, warning that the debt BiH must pay under a Washington arbitration ruling now exceeds 110 million Bosian marks (approximately €56.3 million) and continues to grow by €9,000 each day.

"There have been no serious efforts to address these critical issues. Viaduct will attempt to collect the debt from the BiH state institutions, even though Republika Srpska is responsible for the debt. I cannot accept that the state pays the debts of an entity. That is simply not possible," Schmidt stated.

He stressed the dangers this case poses to vital institutions such as the Central Bank of BiH and the Bosnia and Herzegovina Air Navigation Services Agency (BHANSA).

"We must not gamble with institutions that form the backbone of national infrastructure," he cautioned.

Key measures imposed by Schmidt

To resolve the crisis, Schmidt announced the following decisions:

• A portion of the road toll revenue reserves, blocked since 2018, will be redirected to settle the debt with Viaduct.
• The payment will be made using Republika Srpska’s share of the reserve, without affecting the entity’s budget stability or reducing public services.

"This approach respects the principle that whoever incurs a debt must repay it," Schmidt explained, reminding that RS had previously committed to paying the debt but has "not paid a single pfening since."

In addition, Schmidt ordered the BiH Public Attorney, Central Bank, and BHANSA to urgently take steps to protect state assets and interests.

He also decided that the Central Bank of BiH’s profits will be used to finance the purchase of electoral technology for the 2026 General Elections.

"No one has taken responsibility for this until now. With this decision, the Central Bank can now make its profits available to state institutions," Schmidt declared.

Remaining profits of the Central Bank will also be used exclusively for financing state institutions and preparing a sound state budget.

Schmidt confirmed that, in parallel with these measures, the Federation of BiH (FBiH) will receive an equivalent amount from the road toll reserves, despite the fact that no legal dispute exists between the FBiH and the state.

The decision takes effect upon publication on the OHR website.

"The citizens have waited long enough"

In closing, Schmidt called on political leaders to adopt the state budget without delay:

"The path is clear. The citizens of this country have waited long enough. They have shown patience, resilience, and an unwavering desire to live in a peaceful, democratic, and prosperous nation."

He urged leaders to act in the interest of future generations:

"Do not allow political games to rob them of their future. This is a moment to act on behalf of all citizens, not just party voter bases."

"The path to Europe is open – but not forever"

Finally, Schmidt issued a stark warning that Bosnia and Herzegovina can only make up for lost time if authorities embrace reform:

"The path to Europe is open, but you must take it before it closes," he concluded.