Financial consolidation: Government allocates 13.4 million KM for "Vitezit" debts

The FBiH Government, by today's Decision, approved the initiation of the financial consolidation procedure for the company PS "Vitezit" d.o.o. Vitez with one hundred percent state capital participation. This procedure begins on the day this decision enters into force and cannot last longer than July 10, 2017, reports the BiH news agency Patria.

The approved financial consolidation procedure includes the settlement of PS "Vitezit" debts incurred up to September 30, 2013, in the total amount of 13,491,704.16 KM. This includes debts for health insurance contributions (2,802,712 KM), unemployment insurance (337,360.23 KM), supplied electricity (4,129,011.92 KM), to suppliers (2,222,620.01 KM), and debts to employees (4,000,000 KM).

All of this is in accordance with the justification report for financial consolidation and the medium-term development plan of PS "Vitezit".

The debts will be settled based on the Financial Consolidation Agreement that PS "Vitezit" will conclude with the FBiH Health Insurance and Reinsurance Institute, the Central Bosnia Canton Health Insurance Institute, the Federal Employment Bureau and the Central Bosnia Canton Employment Service, service providers, suppliers, and employees.

The Agreement, a copy of which will be submitted to the FBiH Tax Administration, will re-examine and harmonize, or determine the exact amount, type, and structure of the debts, the method of settlement of obligations, the amounts and dynamics of payment, as well as an indication that the debt settlement is borne by the capital of PS "Vitezit".

The Government has tasked the Assembly of PS "Vitezit" to pass a Decision on capital increase for the portion of obligations subject to consolidation. At the same time, PS "Vitezit" is obliged to report to the Federal Ministry of Energy, Mining and Industry on all activities undertaken to implement this decision on a monthly basis.

This ministry will monitor and report to the FBiH Government on the implementation of this decision within 90 days of its entry into force.