Council of Ministers of BiH without concrete solutions for problems of BiH carriers

(Patria) - The 87th session of the Council of Ministers of Bosnia and Herzegovina was held today in Sarajevo. Read the conclusions below.

Regarding the carriers' demands

The Council of Ministers of BiH has tasked the relevant ministries (Ministry of Communications and Transport of BiH, Ministry of Foreign Trade and Economic Relations of BiH, Ministry of Finance and Treasury of BiH, and Ministry of Foreign Affairs of BiH) and the Indirect Taxation Authority of BiH to provide information by the next session on what has been undertaken regarding the demands of the Logistika BiH consortium.

Based on this, further steps will be determined with the aim of resolving the problems of BiH carriers.

Accession to the Council of Europe Convention

The Council of Ministers of BiH has determined the Draft Basis for the Accession of Bosnia and Herzegovina to the Council of Europe Convention against Trafficking in Human Organs.

The Ministry of Justice of BiH is tasked with submitting the text of the Convention, along with the basis for Bosnia and Herzegovina's accession to this convention, to the Presidency of BiH for further legally prescribed procedure.

The purpose of the Convention is to prevent and combat trafficking in human organs by criminalizing certain acts, protecting the rights of victims of criminal offenses established in accordance with this convention, facilitating national and international cooperation in measures to combat trafficking in human organs, as well as preventive measures at the national and international level.

By acceding to the Convention, Bosnia and Herzegovina would demonstrate strong determination in the fight against illegal trafficking in human organs and join the initiative to strengthen international cooperation mechanisms for the prevention and effective sanctioning of such practices.

Cooperation with the EBRD

The Council of Ministers of BiH has accepted the Initiative for conducting negotiations for the conclusion of a Loan Agreement between Bosnia and Herzegovina and the European Bank for Reconstruction and Development (EBRD) for Credit Line III for the Deposit Insurance Agency of Bosnia and Herzegovina, in the amount of 30 million euros.

The Ministry of Finance and Treasury of BiH is tasked with submitting the draft loan agreement and the basis for its conclusion to the Council of Ministers after the negotiations are completed.

The Management Board of the Deposit Insurance Agency of BiH, at its session held on February 27, 2025, adopted the Decision on approving a potential future borrowing by the Deposit Insurance Agency of BiH in the amount of 30 million euros from the EBRD through a stand-by arrangement by reserving the aforementioned funds.

Based on this, the Deposit Insurance Agency of BiH has submitted a request to the Ministry of Finance and Treasury of BiH to initiate the procedure for creating an obligation on account of external state debt.

Furthermore, the recommendation of the International Monetary Fund mission is for the Deposit Insurance Agency of BiH to have a continuously available credit line.

The goal of this credit arrangement is to ensure rapid availability of funds for the protection of deposits of natural and legal persons in banks in case of potential problems in any of the banks.

Given that the Deposit Insurance Fund does not have the legal possibility of a "lender of last resort" within the budget or with the Central Bank of BiH, such a stand-by line serves as an effective mechanism for strengthening confidence in the banking sector and preserving overall financial stability in the country.

This is a stand-by credit line in the amount of 30 million euros with the EBRD, with an availability period of five years. This initiative represents a continuation of successful cooperation, given that the existing credit line expires in October 2025, and the previous one was active from 2010 to 2017.

It is important to emphasize that the previous credit lines, although available, were never activated, meaning there was no need to draw funds. This confirms the stability of the domestic banking sector and the adequate capitalization of the Deposit Insurance Fund.

Securing such an arrangement for liquidity needs is also a step towards further alignment with European Union directives on deposit insurance schemes.

Proposal for a Decision on Ratification

The Council of Ministers of BiH has determined the Proposal for a Decision on the Ratification of Amendment No. 3 to the Financing Agreement (Electricity Distribution in BiH/C), concluded between Bosnia and Herzegovina and the European Investment Bank (EIB) on May 19, 2014, in Sarajevo and June 5, 2014, in Luxembourg, which the Ministry of Foreign Affairs will submit to the Presidency of BiH for further ratification procedure.

Amendment No. 3 to the Financing Agreement was signed on March 6, 2025, in Luxembourg and June 24, 2025, in Sarajevo. This amendment extends the availability period of the EIB loan until December 31, 2027, as requested by JP Elektroprivreda BiH through the Federal Ministry of Finance.

We remind you that under the previously concluded agreement, Bosnia and Herzegovina, or rather the project implementer JP Elektroprivreda BiH, was approved 15,000,000 euros, with the aim of maintaining, modernizing, and expanding the electricity distribution network.

Working Group Formed

The Council of Ministers of BiH, upon the proposal of the Ministry of Security of BiH, adopted the Decision on the Formation of a Working Group for the drafting of the Law on Amendments to the Law on Prevention and Suppression of Narcotic Drug Abuse.

Delegated representatives from competent ministries and other administrative organizations from the level of BiH, Republika Srpska, Federation of BiH, and Brčko District of BiH have been appointed to the Working Group.

Their task is to draft the Law on Amendments to the Law on Prevention and Suppression of Narcotic Drug Abuse within six months, taking into account international standards established by conventions in this field, and to align it with the EU acquis communautaire.

The goal of drafting the law is to overcome legal gaps in the existing law and to align it with international conventions, European Union standards, and recommendations of relevant domestic and international bodies.

The need for effective coordination of institutions at all levels of government, better definition of responsibilities, as well as the introduction of modern measures for prevention, treatment, and resocialization of drug users has been particularly emphasized.

Council of Europe Cultural Routes

The Council of Ministers of BiH adopted the Report on the Work of the Advisory Council for the Implementation of the Enlarged Partial Agreement of the Council of Europe on the Establishment of Cultural Routes for Bosnia and Herzegovina for the period May 2024 - May 2025.

The Council of Europe launched the Cultural Routes program in 1987 and implements it within the so-called Enlarged Partial Agreement with 38 member states.

Bosnia and Herzegovina joined this agreement in June 2016, the aim of which is to shape a common cultural space through the development of cultural routes, with a special emphasis on raising awareness of heritage, education, networking, quality and sustainable cross-border tourism, and other related activities.

Currently, there are 48 certified cultural routes that run across Europe.

Bosnia and Herzegovina formally participates in six Council of Europe cultural routes: the European Route of Jewish Heritage, the European Route of Cemeteries, the Iron Age Danube Route, the Wine Route, the Route of Roman Emperors and the Danube Wine Route, and the European Route of Historic Pharmacies and Medicinal Gardens.

In the reporting period, the Advisory Council for the Implementation of the Enlarged Partial Agreement expressed interest in including Bosnia and Herzegovina in four more routes: the European Route of Industrial Heritage, Transhumant Livestock Farming, the Route of the Liberation of Europe, and the European Route of Megalithic Culture.

Furthermore, the formation of a new route called Medieval Royal Cities was considered. This route would encompass the cities of: Bobovac, Visoko, Tešanj, Vranduk, Maglaj, Doboj, Dobor near Modriča, Srebrenik, Lašva, Travnik, Jajce, Ključ, etc.

The theme has the potential to include other countries in this route, which is one of the criteria for forming a new Council of Europe route.

At the end of 2024, the document Mapping Cultural Routes for Bosnia and Herzegovina was completed, offering a comprehensive assessment of the current situation and primary goals, emphasizing the development potential of the Council of Europe's Cultural Routes program in Bosnia and Herzegovina. The document is available on the Council of Europe's Cultural Routes website.

Public Procurement Strategy in 2024

The Council of Ministers of BiH, upon the proposal of the Public Procurement Agency, adopted the Annual Report on the Implementation of the Public Procurement Strategy for the period 2024-2028 in Bosnia and Herzegovina for the year 2024.

In the process of developing the Strategy, a detailed situational analysis of the public procurement system was conducted, and 43 measures with 72 concrete activities were developed. For 2024, 12 measures were planned, and all were realized, thus fully achieving the plan.

The Strategy represents a key step in aligning public procurement practices in Bosnia and Herzegovina with European standards and recommendations. The general goal is to establish a modern, transparent, competitive, and efficient public procurement system in BiH, aligned with the EU legal order.

Budget Execution for the First Quarter of 2025

The Council of Ministers of BiH adopted the Report on the Execution of the Budget of Institutions of Bosnia and Herzegovina and International Obligations of Bosnia and Herzegovina for the period I-VI 2025, which will be submitted to the Presidency of BiH and the Parliamentary Assembly of BiH for consideration and adoption.

Total realized revenues, receipts, and financing of BiH institutions in the first half of 2025 amounted to 593,351,278 KM, of which 489,906,000 KM were revenues from the Single Account of the Indirect Taxation Authority of BiH.

Total realized expenditures and outlays of the budget of BiH institutions in the period I-VI 2025 amounted to 600,581,598 KM.

On account of external state debt obligations in the first half of 2025, 648.32 million KM was paid, thereby fully fulfilling all undertaken obligations.

The General Secretariat of the Council of Ministers of BiH and the Ministry of Finance and Treasury of BiH are tasked with publishing the Report on the Execution of the Budget of Institutions of Bosnia and Herzegovina and International Obligations of Bosnia and Herzegovina for the period I-VI 2025 on their websites.

Current Reserve Funds

The Council of Ministers of BiH adopted the Information from the Ministry of Finance and Treasury on the distribution and use of current reserve funds for the period I-VI 2025 and tasked the Ministry of Finance and Treasury to submit this document to the Parliamentary Assembly of BiH for further procedure.

The Information states that out of the planned 2,118,000 KM of current reserve funds, a total of 144,500.00 KM was approved during 2025, of which 142,899.62 KM was realized.

Within the remaining funds in the amount of 1,975,100.38 KM are funds in the amount of 1,600.38 KM approved by decisions of the Council of Ministers and made available, which were not realized during the reporting period.

Otherwise, for the Council of Ministers of BiH, 1,038,000 KM was planned in the current reserve for the period I-VI 2025, 33,000 KM was approved, and 31,399.62 KM was realized.

For the members of the Collegia of both houses of the Parliamentary Assembly of BiH, 180,000 KM was planned, and 66,500 KM was approved and realized, while for the members of the Presidency of BiH, 540,000 KM was planned, and nothing was approved or realized.

For the Chairperson and Deputy Chairpersons of the Council of Ministers of BiH, 360,000 KM was planned, and 45,000 KM was approved and realized.

Law on Higher Education

The Council of Ministers of BiH adopted the Information on the Implementation of the Framework Law on Higher Education in Bosnia and Herzegovina for 2024, prepared by the Ministry of Civil Affairs based on data submitted by competent educational authorities and agencies.

The Ministry of Civil Affairs is tasked with submitting the Information to the entity and cantonal ministries of education, the Department for Education of the Government of Brčko District of BiH, the Agency for Development of Higher Education and Quality Assurance, and the Centre for Information and Recognition of Documents in the Field of Higher Education.

The Information highlighted the necessity of amendments to the Framework Law on Higher Education in Bosnia and Herzegovina, adopted in 2007, which was also pointed out by competent educational authorities and agencies.

Subcommittee Meeting

The Council of Ministers of BiH adopted the Information on the eighth meeting of the Subcommittee on Trade, Industry, Customs, and Taxation between the European Union and Bosnia and Herzegovina held on April 29, 2025.

At this meeting, held in Brussels with the possibility of online monitoring and participation, issues related to the implementation of the Stabilization and Association Agreement, the alignment of legislation in Bosnia and Herzegovina with the EU acquis, and the implementation of other undertaken obligations in the following areas were discussed: trade, free movement of goods, industrial policy, small and medium-sized enterprises, customs, and taxation.

As is customary, the European Commission subsequently provided recommendations from the European Union, as well as a list of additional questions, to enable institutions in Bosnia and Herzegovina to provide further information on specific issues in the sectors that were the subject of this meeting.

Answers to the questions provided by the European Commission were collected by the Directorate for European Integration in cooperation with competent institutions at all levels of government.

The Directorate for European Integration is tasked with informing the competent institutions of the Council of Ministers of BiH, entity governments, cantons, and Brčko District of Bosnia and Herzegovina about the Information on behalf of the Council of Ministers of Bosnia and Herzegovina, and requesting them to provide information on the implementation of the European Commission's recommendations.

Furthermore, the Directorate for European Integration is tasked with submitting the answers from Bosnian and Herzegovinian institutions to the additional questions to the European Commission.

Agriculture and Fisheries

The Council of Ministers of BiH adopted the Information from the Directorate for European Integration on the eighth meeting of the Subcommittee on Agriculture and Fisheries between the European Union and Bosnia and Herzegovina held on November 19, 2024.

At the meeting, held via an online platform, the delegations discussed issues related to the implementation of the Stabilization and Association Agreement in trade and market aspects, as well as the development of bilateral trade relations in the sectors of agriculture and fisheries, agriculture and rural development, sanitary, veterinary, and food safety, and fisheries and aquaculture.

The European Commission only provided recommendations and a list of further activities that institutions in Bosnia and Herzegovina are obliged to fulfill, and to provide additional information and documents to the European Commission in written form on July 29, 2025, to provide information on specific issues in all areas that were the subject of this meeting.

The recommendations and the list of further activities are an integral part of this information.

The Directorate for European Integration is tasked with informing the competent institutions of the Council of Ministers of BiH, entity governments, cantons, and Brčko District of Bosnia and Herzegovina about the adopted information and requesting them to provide information on the implementation of the recommendations and all additional information and documents after the eighth meeting of the Subcommittee.

The Directorate for European Integration is tasked with collecting the information and documents and submitting them to the Council of Ministers of BiH for familiarization, and then to the European Commission.

Trade Exchange

The Council of Ministers of BiH adopted the Analysis of Trade Exchange of Agricultural and Food Products of Bosnia and Herzegovina with the World for 2024, prepared by the Ministry of Foreign Trade and Economic Relations.

According to the analysis, the volume of foreign trade of agricultural and food products of Bosnia and Herzegovina with the world in 2024 reached a record six billion KM with a deficit of 3.8 billion KM.

Exports of agricultural and food products from BiH to foreign markets amounted to 1.1 billion KM, an increase of 9%, while the value of imports was significantly higher, amounting to 4.9 billion KM, with a growth of 10%.

With a total import value of 2.8 billion and an export value of 495 million KM, the European Union is BiH's most significant trading partner in terms of agricultural and food product trade. Approximately 45% of the total export value was placed on the EU market, while about 56% of agricultural and food products were imported into the BiH market from the EU.

The total realized export value to CEFTA partners in 2024 amounted to 459 million KM (11% higher than exports in 2023), while the import value was 1.4 billion KM (7% higher than in 2023), with a deficit of 914 million KM.

CEFTA accounts for 42% of total agricultural and food product exports, while its share in total agricultural and food product imports is lower, at about 28%.

Looking at individual trading partners, 20% of the total export of agricultural and food products from Bosnia and Herzegovina is placed in Croatia, 19% in Serbia, 11% in Montenegro, 8% in North Macedonia, 7% in Turkey, 5% in Slovenia, 4% in Italy, 4% in Germany, 3% in Austria, and 3% in Kosovo.

Approximately 25% of the total import of agricultural and food products into the Bosnian and Herzegovinian market is imported from Serbia, 12% from Croatia, 8% from Germany, 7% from Italy, 6% from Hungary, 5% from Brazil, 5% from Poland, 4% from the Netherlands, 3% from Turkey, 3% from Austria, and 2% from Slovenia.

In the structure of agricultural and food product exports, primary products such as milk, frozen raspberries, wheat flour, and canned goods dominate, while processed products such as ketchup and other tomato sauces, sweet biscuits, wafers, and waffles are less represented.

In contrast to exports, processed products such as water, malt beer, cigarettes, non-alcoholic beverages, and beef dominate the top ten agricultural and food product imports, followed by primary products such as sugar for refining, coffee, etc.

Analysis of the Aftercare Program

The Council of Ministers of BiH took note of the Analysis of the Aftercare Program for 2024.

Within this program, FIPA visited 30 companies with foreign capital, with a total realized investment of 727.4 million euros (1.4 billion KM), employing 5,683 workers.

Of this number, 5,417 workers are newly employed, while 266 were taken over through privatization or acquisition. Planned investments in the next three years amount to 163.4 million euros, and the opening of 1,777 new jobs is expected.

Of the 30 companies visited, 21, or 70%, are from the manufacturing sector. Realized investments in manufacturing are 569.9 million euros (initial investments of 172.6 million euros and reinvestments of 397.3 million euros).

3,074 workers are employed, of which 2,946 are new jobs and 128 are retained workers. In the next three years, investments in manufacturing are planned in the amount of 123.1 million euros and employment for 1,340 new workers.

Of the 21 manufacturing companies, only three stated that they do not plan reinvestments and an increase in the number of employees, while 18 companies, or 85.7%, plan growth and new employment.

The Aftercare program represents a systematic activity for monitoring investments after their realization. The main goal is to maintain contact with investors, assist in resolving problems, and create a favorable environment for their expansion and reinvestment.

Approval for Microcredit Foundation MIKROFIN

The Council of Ministers of BiH, upon the proposal of the Ministry of Finance and Treasury, has given its approval to the microcredit foundation MIKROFIN Banja Luka to submit an application to the Council of Europe Development Bank for a programmatic loan in the microfinance sector.

The Council of Europe Development Bank will grant a loan to MIKROFIN in the amount of 10,000,000 euros for the partial financing of its microcredit activities for business and agricultural loans to support women and women-owned businesses in acquiring means of production, working capital, or building and expanding business premises, thereby contributing to the creation of micro-enterprises and self-employment.

MIKROFIN, as the borrower, fully bears the risk of loan repayment, the risk of financing in the target sector, and provides the lender with all necessary coverage and guarantees for loan approval.

The obligation to give consent for investments carried out by the Council of Europe Development Bank in Bosnia and Herzegovina arises from Articles II and VII of the Articles of Agreement of the Council of Europe Development Bank and is not linked to the borrowing of Bosnia and Herzegovina or the issuance of sovereign state guarantees.

Citizenship in the Economic Sphere

The Council of Ministers of BiH adopted the Decision on acquiring citizenship of Bosnia and Herzegovina for Sean Christopher Kearney, a citizen of the United States of America, upon the proposal of the Chamber of Commerce of the Federation of BiH.

Kearney is the Chief Financial Officer and a member of the board of directors of the American group of companies Genomenon, Inc., which is involved in the development of software for genetic artificial intelligence and has been investing in Bosnia and Herzegovina indirectly and directly for many years.

Approval for Appointment

The Council of Ministers of BiH, upon the proposal of the Ministry of Foreign Affairs, has given its approval for the appointment of Major Pi Yaoxian as the secretary to the deputy military attaché of the People's Republic of China in Bosnia and Herzegovina.