Council of Ministers of Bosnia and Herzegovina Holds Its 87th Session

BIH TRANSPORTERS’ REQUESTS CONSIDERED 

The Council of Ministers of BIH tasked sector Ministries (Ministry of Communications and Transport of BIH, Ministry oof Foreign Trade and Economic Relations, Ministry of Finance and Treasury, and Ministry of Foreign Affairs) and the Indirect Taxation Administration of BIH to provide a piece of information by the next session on actions taken upon a request by Logistika BIH consortium, on the basis of which further steps will be defined towards solving the issue of BIH transporters.

ACCESSION TO CONVENTION AGAISNT TRAFFICKING IN HUMAN ORGANS

The Council of Ministers of BIH defined a platform for accession of Bosnia and Herzegovina to the Council of Europe Convention against Trafficking in Human Organs.

The Ministry of Justice should send the Convention text together with basics for accession of Bosnia and Herzegovina to it to the Presidency of BIH for further legal procedure.

The purpose of the Convention is prevention and combat against trafficking in human organs through incrimination of certain actions, protection of rights of victims, facilitation of cooperation at national and international levels through measures suppressing trafficking in human organs, as well as prevention measures at both national and international levels.

Acceding to the Convention, Bosnia and Herzegovina would show its strong commitment to combating unauthorised trade in human organs and would joint an initiative for strengthening international cooperation in prevention and effective sanctioning of such practice.

BIH CONTINUES COOPERATION WITH EBRD ON DEPOSIT PROTECTION

The Council of Ministers of BIH endorsed an Initiative for negotiations on a Loan Agreement between Bosnia and Herzegovina and the European Bank for Reconstruction and Development (EBRD) for EUR 30 million Credit line III for Deposit Insurance Agency of Bosnia and Herzegovina. The Ministry of Finance and Treasury of BIH should, upon the negotiations finalised, provide a Draft Loan Agreement with Platform for its conclusion to the Council of Ministers.

The Deposit Insurance Agency Steering Board adopted a decision on approval of borrowing in amount to EU 30 million with EBRD via a stand-by arrangement by way of reserving the resources. The Deposit Insurance Agency therefore requested the Ministry of Finance and Treasury of BIH to start a procedure for creation of foreign debt liability; IMF recommendation for the Agency was to enjoy continuously available credit line.

The aim of this credit line is to ensure a fast availability of funds for deposit protection of natural and legal persons in banks in case of possible problems in some of banks. Since the Deposit Insurance Fund cannot be legally “the last resort” within Budget or with the Central Bank of BIH, such stand-by line serves as an effective mechanism for boosting confidence in banking sector and maintenance of total financial stability in the country.

It is a stand-by credit line of EUR 30 million with EBDR with a five-year availability term. The initiative is continuation of a successful cooperation, since the existing credit line expires in October 2025, while the previous one was effective in 2010-2017.

The previous credit lines, although available, have never been activated, since there has been no need for funds withdrawal, which indicates at stability of domestic banking sector and adequate capitalisation of the Deposit Insurance Fund. Ensuring such arrangement for liquidity needs is also a step towards further harmonisation with the EE directives on systematic deposit insurance.

PROPOSAL DECISION ON RATIFICATION DEFINED

The Council of Ministers of BIH defined a Proposal Decision on Ratification of Amendment 3 to Finance Contract (Distribution of Electric Power in BIH/C), concluded between Bosnia and Herzegovina and the European Investment Bank in Sarajevo on May 19, 2014, and in Luxembourg on June 5, 2014, to be provided by the Ministry of Foreign Affairs to the BIH Presidency for further procedure.

The Amendment 3 to Finance Contract, signed in Luxembourg on March 6, 2025, and in Sarajevo on June 24, 2025, extends the EIB loan availability to December 31, 2027, as requested by the Public Company Power Utility via the Federal Ministry of Finance.

Under the previously concluded Contract, Bosnia and Herzegovina, i.e. the project implementor Power Utility of BIH, was approved EUR 15,000,000 for maintenance, modernisation and expansion of electric energy distribution grid.

WORK GROOUP FOR LAW AMEDMENT ON PREVENTION AND SUPPRESSION OF MISUSE OF NARCOTICS

The Council of Ministers of BIH took the Ministry of Security-proposed Decision to form a Work Group for Development of Draft Law on Amendments and Supplements to Law on Prevention and Suppression of Narcotics Misuse.

The Work Group will be comprised of delegated representatives of competent institutions and other administrative bodies at level of BIH, Republika Srpska, Federation od BIH, and the Brčko District of BIH. Its task is to develop a Draft Law on Amendments and Supplements to the Law on Prevention and Suppression of Narcotics Misuse, having regard of international standards defined under relative conventions, and harmonise thereof with the EU acquis.

The aim of the Draft is to overcome legal emptiness in the existing law and to harmonise it with international conventions, EU standards and recommendation by relevant domestic and international bodies. A need was especially highlighted for an effective coordination of all level institutions, improved definition of competences, and introduction of modern preventive measures, including drug addicts healing and resocialisation.

BIH PARTICIPATION IN COUNCIL OF EUROPE CULTURAL ROUTES PROGRAMME

The Council of Ministers of BIH adopted an Activity Report of the Advisory Council for implementation of an Enlarged Partial Agreement of the Council of Europe on Establishment of Cultural Routes for Bosnia and Herzegovina for May 2024 – May 2025.

The Council of Europe Cultural Routes Programme was initiated in 1987 and is implemented within the so-called Expanded partial Agreement with 38 member-countries. Bosnia and Herzegovina joined the Agreement in June 2016, the aim of which is shaping a joint cultural space through development of cultural routes with a special emphasis to heritage awareness raising, education, networking, quality and sustainable cross-border tourism, including other related activities. There are currently 48 certified cultural routes passing throughout Europe.

Bosnia and Herzegovina takes part formally in six cultural routes of the Council of Europe, namely; European route of Jewish heritage, European graveyards route, Danube iron age route, Wine route, Roman emperors road and Danube wine road; and the European route of historic pharmacies and medical herbs gardens.

The Advisory Council for implementation of the Expanded Partial Agreement expressed its interest, in the reported time period, for inclusion of Bosnia and Herzegovina into four more routes, namely: European route of industrial heritage, Transhumant cattle raising, European Liberation route and European Megalith Culture tour.

Formation of a new route titled Medieval Royal Cities has been considered, to include towns of Bobovac, Visoko, Tešanj, Vanduk, Maglaj, Doboj, Dobor near Modriča, Srebrenik, Lašva, Travnik, Jajce, Ključ etc. The theme has potential for inclusion of additional states into the route, which is one among criteria for establishment of a new route of the Council of Europe.

A Country Mapping Document for Bosnia and Herzegovina was finalised by the end 2024, offering a comprehensive assessment of the current situation and primary aims, emphasising the development potential of cultural routes programme of the Council of Europe in Bosnia and Herzegovina. The document is available at the Council of Europe cultural routes web site.

SUCCESSFUL IMPLEEMTNATION OF 2024 PUBLIC PROCUREMENT STRATEGY

The Council of Ministers of BIH adopted 2024 Annual Report on implementation of 2024-2028 Bosnia and Herzegovina Public Procurement Strategy.

Within the Strategy development process, a detailed situation analysis of the public procurement system was made, and 43 measures were taken with 72 concrete activities. Total 12 measures were planned for year 2024, all of them implemented thus realising the plan fully.

The Strategy represents a key step in harmonisation of public procurement practice in Bosnia and Herzegovina with European standards and recommendations. The overarching aim is to set-up a modern. transparent, competitive and effective public procurement system in BIH, harmonised with the EU acquis.

I-VI 2025 BUDGET EXECUTION REPORT ADOPTED

The Council of Ministers of BIH adopted a Budget Execution Report of Institutions of Bosnia and Herzegovina and International Obligations of BIH for I-VI 2025, to be sent to the BIH Presidency and Parliamentary Assembly of BIH for consideration and adoption.

The total realised revenues, receivables and finances of BIH institutions in the first half of 2025 were KM 593,351,278, of which KM 489,406,000 revenues from the Single Treasury Account of the Indirect Taxation Administration.

Total realised expenditures and costs of the Budget of BH Institutions for I-VI 2025 were KM 600,581,598.

Based on foreign debt, KM 638,32 million was paid in the first half of 2925, thus fulfilling all obligations assumed.

The Council of Ministers of BIH Secretariat-General and Ministry of Finance and Treasury of BIH are obliged to post the Budget Execution Report on their respective web sites.

USE OF CURRENT RESERVE FUNDS

The Council of Ministers of BIH adopted the Ministry of Finance and Treasury-tabled piece of information on use of current reserve resources for I-VI 2025 and tasked the Ministry of Finance and Treasury to send the document to the BIH Parliamentary Assembly for further procedure.

The piece of information suggests that out of planned KM 2,118,000 of current reserve funds, approved was total KM 144.500.00 during 2025, of which realised was 142,899.62. Within the remaining KM 1,975,100.38, there is KM 1,600.38 approved by the Council of Ministers, but have not been realised within the report time span.

The Council of Ministers of BIH planned KM 1,038,000 of current reserves in I-V 2025, and it approved KM 33,000, while realised was KM 31,399.

The Parliamentary Assembly both Chambers collegium members were planned to get KM 180,000, of which approved and realised was KM 65,500, and for BIH Presidency members planned was KM 540,000, and non was approved nor realised. For Chairwoman of the Council of Ministers and her Deputies planned was KM 360,000, and approved and realised was KM 45,000.

IMPLEMENTATION OF FRAMEWORK HIGH EDUCATION LAW

The Council of Ministers of BIH adopted a piece of information on implementation of a Framework Law on High Education in Bosnia and Herzegovina in 2024, drafted by the Ministry of Civil Affairs, based on data from competent education authorities and agencies.

The Ministry of Civil Affairs should pass the piece of information to the Entity and Cantonal Ministries of Education, Education Division of the Brčko District of BIH, Agency for High Education Development and Quality Insurance, and to Centre for Information and High Education Documents Recognition.

The piece of information points at a necessity for supplements to 2027 Framework Law on High Education in Bosnia and Herzegovina, as supported by competent education authorities and agencies.

PIECE OF INFORMATION ADOPTED ON EIGHTH MEETING OF EU-BIH SUB-COMMITTEE FOR TRADE, INDUSTRY, CUSTOMS AND TAXATION

The Council of Ministers of BIH adopted a piece of information on the eighth meeting of the Sub-Committee for Trade, Industry, Customs, and Taxation between the European Union and Bosnia and Herzegovina, held on April 29, 2025.

The Brussels-held meeting, with an open possibility of on-line attendance, considered implementation of the Stabilisation and Accession Agreement, harmonisation of legislation of Bosnia and Herzegovina with the EU acquis, and implementation of other assumed obligations in the aeras of trade, free movement of goods, industry policy, SMEs, customs and taxation.

As usual, the European Commission supplied the EU recommendations subsequently, including a list of additional questions, so that Bosnia and Herzegovina institutions would provide additional data on certain issues in sectors considered at the meeting. Reponses to the European Commission questions was collected by the Directorate for European Integrations, in cooperation with competent all-level institutions.

The Directorate for European Integrations should inform, on behalf of the Council of Ministers of BIH, all responsible institutions of Bosnia and Herzegovina and of Entities, cantons, and the Brčko District of BIH governments on data required from them, including those on implementation of the European Commission recommendations.

The Directorate for European Integrations should provide answers of BIH institutions to the additional questions to the European Commission.

PIECE OF INFORMATION ON MEETING OF SUB-COMMITTEE FOR AGRICULTURE AND FISHERY BETWEEN EU AND BIH

The Council of Ministers of BIH adopted a piece of information of the Directorate for European Integrations on the eighth meeting of EU-BIH Sub-Committee for Agriculture and Fishery, held on November 19, 2024.

The meeting, held through an on-line platform, considered the issues of implementation of the Stabilisation and Accession Agreement in trade and market aspects, as well as development of bilateral trade relations in sectors of agriculture and fishery, agriculture and rural development, phytosanitary, veterinary and food safety areas.

The European Commission send recommendations and list of further activities, as late as June 29, 2025, which Bosnia and Herzegovina institutions are obliged to fulfil, including sending additional data and documents to the European Commission for providing information on certain issues in relevant areas. Recommendations and list of further activities are an integral part of the piece of information.

The Directorate for European Integrations should inform all responsible institutions of the Council of Ministers of BIH, including Entity, Cantonal, the Brčko District of BIH Governments on the adopted piece of information and require from them data on the recommendations’ implementation and additional information and documents after holding the eighth Sub-Committee meeting. The collected information and documents should be sent to the Council of Ministers of BIH for information and subsequently to the European Commission.

ANALYSIS OF TRADE OF AGRICULTURAL AND FOOD PRODUCTS

The Council of Ministers of BIH adopted an Analysis of foreign trade of agricultural and food products of Bosnia and Herzegovina in 2024, drafted by the Ministry of Foreign Trade and Economic Relations.

According to the Analysis, the volume of foreign exchange of agricultural-food products of Bosnia and Herzegovina in 2024 reached a record level of KM six billion with deficit of KM 3.8 billion. The export of agricultural-food products from BIH was KM 1.1 billion, and is higher for 9%, while the value of import was much higher, KM 4.9 billion, as increased for 10%.

With a total value of import of KM 2.8 billion and export of KM 495, the European Union was the most relevant trade partner to BIH when in question the trade of agricultural-food products. Out of total export value, 45% was placed to the EU market, while about 56% of import of agricultural-food products to BIH was from the EU market.

The total value of export toward CEFTA partners in 2024 amounted to KM 459 million (11% more than in 2023), while the value of import was KM 1.4 billion (7% more than in 2023), in which a deficit was recorded of KM 914 million. In total export of agricultural-food products, CEFTA share is 42%, while its share in total import of agricultural-food products is 28%.

Viewing by trade partner countries severally, 20% of total export of agricultural-food products from Bosnia and Herzegovina is was placed to Croatia, to Serbia (19%), Montenegro (11%), North Macedonia (8%), Turkie (7%), Slovenia (5%), Italy (4%), Gemany (4%), Austria (3%) and Kosovo* (3%). About 25% of total import of agricultural-food products to Bosnia and Herzegovina was made from Serbia, from Croatia 12%, Italy 7%, Hungary 6%, Brazil 5%, Poland 5%, Netherlands 4%, Turkie 3%, and from Austria 3% and Slovenia 2%.

In the agricultural-food products export structure, predominating were dairy products, frozen redberries, wheat flour, canned products, while processed products are less traded, like ketchup and other tomato souses, sweet cakes, waffles, wafers etc., and unlike the export, in top ten imported products dominating were processed products like water, beer made from  malt, cigarettes, soft drinks, beef meat, and primary sugar for refining, coffee etc.

AFTERCARE PROGRAMME ANALYSIS: FOREIGN INVESTORS PLAN EXPANSION AND NEW JOBS

The Council of Ministers took note of 2024 Analysis of Aftercare Programme.

Within the Programme, FIPA visited 30 companies with foreign capital, with total implemented investments in amount of EUR 727.4 million (KM 1.4 billion), employing 5683 workers, of which 5417 are newly employed ones, and 266 were taken over following privatisation or acquisition. Investments planned for the next three years amount to EUR 164.4, and new 1777 jobs are expected to be opened.

Among the visited companies, 21 or 70% are from the production sector. The implemented investments within production were EUR 569.9 (initial investments were EUR 172.6 million and reinvestments were EUR 397.3 million).  Total 3074 workers were employed: 2.946 new jobs and 128 were taken over. Plans include EUR 123.1 million worth investments to production in the next three years, including employment for new 1340 workers. Out of 21 production companies, three of them only indicated no reinvestments nor new employment, while 18 companies or 85.7% plan growth and new employment.

The Aftercare Programme represents a systemic activity, monitoring investments after their implementation. The main aim is to maintain contact with investors, assist in issue-solving and create conducive environment for their expansion and reinvestments.

·         The title is of no prejudice as to Kosovo status and it is in accordance with UNSC resolution 1244 and award by International Court of Justice on Kosovo’s Declaration on Independence.

CONSENT TO MICROFIN FOUNDATION FOR APPLICATION WITH CEB

The Council of Ministers of BIH granted its consent, upon the Ministry of Finance and Treasury’s proposal, to a microcredit foundation MIKROFIN Banjaluka for filling an application with the Council of Europe Development Bank (CEB) for a programmatic loan in microfinance sector.

The CEB allocates the loan to MIKROFIN in amount of EUR 10,000,000 for a partial financing of its microfinancing operations for business and agricultural loans as support to women and women-owned companies for acquisition of production resources, working capital or development or expansion of business premises, thus contributing to creation of micro enterprises and self-employment.

MIKROFIN, the borrower, bears the repayment risk, financing risk throughout the targeted sector, including all needed coverage and guarantees for the loan approval.

An obligation of consent granting for CEB investments in Bosnia and Herzegovina stem from the Articles II and VII of the CEB Articles of Agreement and is not related to indebting of Bosnia and Herzegovina or to sovereign guarantees issuance.

BIH CITIZENSHIP IN AREA OF ECONOMY

The Council of Ministers of BIH took a decision on granting citizenship of Bosnia and Herzegovina to Sean Christopher Kearney, citizen of the United States of America, upon a proposal by the Chamber of Commerce of the Federation of BIH.

Kearney is CFO and member of the Steering Board of Genomenon, an US company dealing with software development for genetic AI, which invests for years, directly and indirectly, to Bosnia and Herzegovina.

CONSENT TO APPOINTMENT

The Council of Ministers of BIH granted its consent for appointment of Mayor Pi Yaoxoan for Secretary of Military Attaché of the Pople’s Republic of China in Bosnia and Herzegovina.  (end)

Link for Photos:

https://www.flickr.com/photos/vijeceministara/albums/72177720328931168