Government Seeks Extension of Law on Financial Consolidation of Business Entities for Another Two Years

The proposal for the Law on Amendments to the Law on Financial Consolidation of Business Entities in the Federation of Bosnia and Herzegovina will be on the agenda of the House of Representatives of the Parliament of the Federation of BiH tomorrow, among other things.

The Government of the FBiH seeks to extend the application of this law until 2019, so that some companies do not face court proceedings during their financial recovery.

“Since business entities for which financial consolidation proceedings were approved three years ago will not be able to complete the initiated activities within the legal deadline (July 10, 2017), the proposed legal solution allows business entities to resolve the defined problem within another two years, i.e., until July 10, 2019,” the Government states.

“There is an urgent need to adopt amendments to this law in order to avoid harmful consequences for the Federation of Bosnia and Herzegovina,” the Government's explanation further states.

The Law on Financial Consolidation of Business Entities in the Federation of Bosnia and Herzegovina, published in July 2014, aimed to separate current operations from the burdens and debts of the past that burdened a large majority of companies, primarily those in partial or full state ownership.

The Law on Financial Consolidation attempts to create prerequisites for companies to participate in public procurement through tenders, access credit funds, resolve debt issues related to unpaid contributions to employees, eliminate the risk of bankruptcy or liquidation proceedings, and the like. This law was in effect until July 2017. The government is now seeking its extension for an additional two years, writes NAP.