New shock for businessmen in the Federation: FBiH Government abolishes interest subsidies for small businesses!

By: A. Čorbo-Zećo

At the end of December, specifically on 12/30/2024, the FBiH Government made a decision to cease the validity of the expenditure of funds for current transfers – subsidies to private companies and entrepreneurs – Interest subsidization – Guarantee Fund established by the FBiH Budget for 2024 for the Federal Ministry of Development, Entrepreneurship and Crafts!



This decision, adopted by the FBiH Government, was proposed by Minister Vojin Mijatović and was made directly to the detriment of small businesses. Because with this decision, the FBiH Government committed to subsidizing interest for companies through the Development Bank of the Federation. Companies took out loans, signed contracts, and are now receiving notifications that it's all for nothing because the FBiH Government has withdrawn its earlier decision!

The earlier decision was made in May 2024 and provided for interest subsidies for small and medium-sized enterprises in the amount of one million KM.

This is a new blow to the economy of the Federation, especially considering that contributions have not been reduced nor has fiscal reform been carried out after the absurd decision to set the minimum wage in the FBiH at 1,000 KM.

Businessmen did not receive an explanation for why this was done along with the notification, but Patria has learned that this was done due to the devastating floods that affected certain areas of Bosnia and Herzegovina!

„Due to the need to help endangered small and medium-sized enterprises in the new situation, the Federal Ministry of Development, Entrepreneurship and Crafts proposed to the FBiH Government that the currently available funds be transferred to the accounts of local self-government units affected by the natural disaster“, the reasons for adopting such a decision, which is a new blow to the economy of the Federation, state.

And that is all they stated in the decision that they will not subsidize interest for small businesses after all. The lack of explanation for this decision, apart from the situation caused by natural disasters, leaves room for speculation, but it is clear that this is another blow to the stability of small and medium-sized enterprises in the Federation of Bosnia and Herzegovina.