Damir Miljević for NAP: The number of blocked accounts indicates that the economic situation is increasingly difficult

The Central Bank of Bosnia and Herzegovina announced that as of the end of June, as many as 73,836 accounts were blocked in Bosnia and Herzegovina, reports Patria News Agency.

According to data published by the C BiH, the number of companies with at least one blocked account is 63,431.

Among the companies with blocked accounts are small shops, butcheries, youth sports schools, but also former large economic giants such as Energoinvest or Lasta from Čapljina. Mostly, these are companies with one blocked account, but there are also those with as many as seven or more blocked accounts, such as Feroelektro.

The number of blocked accounts is growing year by year, as shown by the fact that in 2004, 2,484 accounts were blocked, while today the number of blocked accounts has reached almost 75,000.

Economic analyst Damir Miljević told Patria News Agency that this is a consequence of the poor and completely dysfunctional legal system in the country.

- In my opinion, this is a consequence of the poor and dysfunctional legal system in that segment (inadequate and unclear regulations, slowness in resolving economic disputes, etc.), as well as the fact that for many years, authorities at all levels in BiH have not been dealing with the economy, improving business conditions, and the rule of law – says Miljević. 

Miljević also adds that the state has imposed high taxes and contributions on small entrepreneurs, which they are simply unable to meet, and thus cannot survive in market competition with large companies.

- The accumulation of blocked company accounts only indicates that the economic situation is increasingly difficult and that illiquidity is the main characteristic of the economic system – emphasizes Miljević.

One of the reasons for account blocking, Miljević believes, is that everywhere in the world, according to the Law on Payment Deadlines, companies are obliged to pay their obligations within 30 to 60 days, while in our country, this obligation is postponed indefinitely, which ultimately leads to problems.

Miljević believes that this catastrophic situation in the domestic economy will result in an increasingly difficult economic and social situation. 

- The consequence of all this is legal uncertainty, a low level of domestic and foreign investment in the country, and in accordance with that, an increasingly difficult economic and social situation – concluded Damir Miljević for NAP.