Council of Ministers of Bosnia and Herzegovina Holds Its 94th Session

PAYMENT OF ONE-TIME ASISTANCE TO EMPLOYEES IN BIH INSTITUTIONS

The Council of Ministers of BIH took the Ministry of Finance and Treasury-proposed decision to approve current budget reserve funds for payment of one-time cash assistance to employees in Institutions of Bosnia and Herzegovina for the aim of protection of their material position.

Total KM 36.5 million was secured from the current budget reserves for distribution of KM 1,000 for employees in BIH Institutions.

The defined amount of the one-time assistance will not be paid to members of the Presidency of BIH, Delegates and Deputies with the Parliamentary Assembly of BIH, Chairwoman of the Council of Ministers, Ministers and Deputy Ministers, nor to individuals lacking status of an employee in BIH Institutions in time of adoption of 2025 Budget of BIH Institutions.

Payment of the one-time assistance is a consequence of untimely adoption of the Law on Budget of BIH Institutions and Obligations of BIH, due to which salary was paid throughout 2025 based on  basic salary for 2024 (KM 6,00), instead of basic salary for 20225 (KM 31.50), consequently leaving employees with lessen income in 2025.

SUPPORT TO INFRASTRUCTURE PROJECTS IN BIH

The Council of Ministers of BIH adopted an Initiative from the Ministry of Finance and Treasury and designated a negotiating delegation for a Loan Agreement - Investment Programme for Construction, Reconstruction and Rehabilitation of Highways in the Federation of Bosnia and Herzegovina, between Bosnia and Herzegovina and the International Bank for Reconstruction and Development (IBRD).

It is EIR 70 million worth loan, intended for bridging traffic connection and strengthening of road network management in the Federation of BIH.

An initiative was adopted and negotiating delegation designated for conclusion of a Loan Agreement - Sustainable Solid Waste Management Project, between Bosnia and Herzegovina and the International Bank for Reconstruction and Development, worth EUR 45 million, upon a proposal by the Ministry of Finance and Treasury.

The Solid Waste Management Project was harmonised with BIH priorities and broader aims of the Western Balkans Green Programme, and it follows the Federal Environment Protection Strategy, in the processes of Bosnia and Herzegovina accession to the European Union.

The projects list include construction and rehabilitation of depose in Goražde, Zenica, Mostar, Gradačac, Kalesija, Bosanska Krupa, Bihać, and development of waste separation system in Sarajevo Canton.

Following finalised negotiations, the Misntir of Finance and Treasury will, pursuant to the Law on Borrowing, Dept and Guarantees of Bosnia and Herzegovina, send draft finance agreements/contracts severally and platforms for conclusion thereof to the Council of Ministers od BIH.

RATIFICATION OF CONVENTIONS AND PROTOCOL OF THE INTERNATIONAL LABOUR ORGANISATION

The Council of Ministers of BIH defined, upon the Ministry of Civil Affairs proposal, a Proposal Platform for Ratification of five conventions and Protocol 155, proposed by the International Labour Organisation, which will be sent to the Presidency of BIH to an adoption decision-making procedure.

It is about 1990 Convention on Chemicals, 1989 Convention on Safety and Health in Construction, 1985, Convention on Labour Statistics, 1979 Convention on Protection and Health on Work, 1969   Convention of Medical Care and Indemnification in Case of Illness, and 2002 Protocol to 1981 Convention on Protection and Health in Work.

PROPOSAL LOAN CONTRACT FPR DEOSIT INSURANCE AGENCY DEFIEND

The Council of Ministers of BIH defined a Proposal Laon Agreement (Credit line No. III to Deposit Insurance Agency of Bosnia and Herzegovina) Between Bosnia and Herzegovina and the European Bank for Reconstruction and Development, for the aim of securing overall stability of finance sector, in line with previously defined practice.

It is about EUR 30 million loan to be transferred to the Deposit Insurance Agency of Bosnia and Herzegovina, after the previous loan expired in 2025, when reserved funds of EUR 30 million were available, This credit line, as well as the previous one worth EUR 50 million, which expired in 2017, had never been activated, and funds from that loan may be used under specially defined loan conditions and circumstances.

The Proposal Contract with Platform for its conclusion will be sent to the BIH Presidency for further decision-making procedure, and the Minister of Finance and Treasury of BIH will be proposed for the BIH signatory thereof.

CoM BIH ADOPTS 2026-2028 DEVELOPMENT-INVESTMENT PROGRAMME

The Council of Ministers of BIH adopted the Ministry of Finance and treasury-proposed 2026-20288 Public Investment Programme/Development-Investment Programme (PJI/RIP) of Bosnia and Herzegovina Institutions, that contains data on 289 projects, worth total KM three billion and 296.15 million.

Among the projects, 123 projects, worth KM 930.61 million are in implementation, 26 projects, worth KM 278.6 were approved, while 139 candidate projects are worth KM two billion are worth KM two billion and 86.95 million.

Out of total value of all projects, KM two billion and 897.58 million refer to investment to capital projects, and KM 398.57 million to investments to institutional projects The value of projects under the Development-Investment Programme directly contributing to social-economic development. is KM 1 billion and 85.13 million, and the value of remainder of projects is KM two billion and 211.02 million.

Among KM 930.61 million-worth projects in implementation, KM 660.78 million refer to investments to capital projects, and KM 269.83 refer to investments to institutional projects.

2026-2028 Public Investments Programme/Development-Investment Programme of BIH Institutions is a planning instrument enabling better use of budget funds and improved access to foreign financial sources for funding multi-annual projects.

The development-Investment Programme will be posted at the official web site of the Ministry of Finance and Treasury of BIH within 10 days from the adoption thereof.

BIH NEGOTIATING TEAM AD HOC MEMBERS APPOINTED

The Council of Ministers of BIH took two decisions on appointment of ad hoc members of the BIH Negotiating Team in investment disputes amicable solution procedures, upon a proposal by the Chief Attorney’s Office of BIH.

It is a procedure initiated upon a request for amicable solution of investment dispute, filled by Banja Luka-based Mr. Goran Bubić Law Office, on behalf of five investors, namely, two citizens of the Republic of Slovenia – Lenart Skok form Ljubljana and Blaž Banjc from Ljutomir – and three citizens from the Republic of Serbia – Osman Ćelović from Prijepolje, Milutin Dobrilović from Belgrade, and Adis Ćelović from Prijepolje.

Under the decisions, appointed to the Negotiating Team were a (ad hoc) member from each the Republika Srpska Administration for Geodetic and Property-Legal Affairs, Municipality of Rudo, and Chief Attorney’s Office of Republika Srpska.

Simultaneously, for ad hoc Negotiating Team members appointed were representatives of the Ministry of Energy and Mining of Republika Srpska and Chief Attorney’s Office of Republika Srpska, upon a notification on dispute and intention to start an arbitrage procedure before the International Centre for Settlement of Investment Disputes (ICSID), filled by “BAROŠ&PARTENRS” Law Office in behalf of Kermas Energija, Ltd. Zagreb Company.

The ad hoc members will join the earlier formed Negotiating Team of Bosnia and Herzegovina for amicable solution of investment disputes, for the aim of securing timely, coordinated and effective action by responsible institutions in representation and protection of interests of Bosnia and Herzegovina in the amicable solution of international investment disputes procedure.

The Negotiating Team will be comprised of one representative from the Stading Body for Negotiations, made of representatives from each the Chief Attorney’s Office of BIH, State-level Ministries of Finance and Treasury, Foreign Trade and Economic Relations, and Justice, accompanied by ad hoc members appointed during action upon each concrete request from a foreign investor for amicable dispute solution.

RECOMMENDATIONS IMPLEMENTATION

The Council of Ministers of BIH adopted, in a new text, a piece of information by authorities of Bosnia and Herzegovina on 2024-2025 implementation of recommendations of the European Committee for Prevention of Torture, Inhuman or Degrading Treatment and Punishment (CPT).

The piece of information was made for briefing the Council of Ministers of BIH on a visit by a CTP delegation in September 2024, on obligations of Bosnia and Herzegovina authorities stemming from the visit and on implantation of recommendations the Committee sends to state authorities after an insight into the real situation in visited institutions.

Following the 10th periodic visit of the CPT delegation to Bosnia and Herzegovina in September 2024, a Visit Report was adopted in March 2025, and it contains 137 recommendations to authorities of Bosnia and Herzegovina. Other than general recommendations, the CPT signalled a series of specific suggestions referring to establishment of a preventive mechanism in Bosnia and Herzegovina, improvement of conditions in law implementation institutions, boosting of protective measures against abuse, improvement of conditions in prison institutions, as well as improvement of conditions in immigration-containment centre in Lukavica. The Ministry for Hamn Rights and Refugees of BIH, as a coordinating body, drafted a dynamic plan for recommendations implementation, for the realisation of which the state-level Ministries of Security and Justice are responsible, and this includes the Institution of Ombudsman for Human Rights of BIH, Judicial Committee of the Brčko District of BIH and Entity and Cantonal Ministries of Interior.

BIH SUCCESSFUL IN 2024 CREATIVE EUROPE PROGRAMME

The Council of Ministers of BIH adopted a piece of information from the Ministry of Civil Affairs on participation of Bosnia and Herzegovina in the European Union Creative Europe Programme in 2024, with additional conclusion made at the session.

The piece of information suggests that last year was successful because of the increase of number of applicants from BIH and more funds drown from the European Union Creative Europe Programme.

Applicants from Bosnia and Herzegovina were approved funds last year in total amount of EUR 3,627,426.58, with an increasing number of responses to public calls. Applicants from Bosnia and Herzegovina in 2024 filled 53 applications, and in 2022 there were only 30 to increase to 51 in 2023.

Increased public awareness on benefits of the Creative Europe Programme resulted in considerable funds withdrawal by applicants from BIH, who drew EUR 8,733,960.40 in time between 2012 and July 14, 2025; this may be compared to 2014-2020 time when withdrawn was EUR 4,513,814.

Out of 53 submitted applications in 2024, 33 refer to public calls within the Culture Sub-Programme, seven applications were within the Media Sub-Programme, and the remaining 13 applications were submitted within Cross-Sector Programme.

In the Culture Sub-Programme, Bosnia and Herzegovina had seven successful applicants, whose projects were supported by total EUR 1,981,346.81, and in the Media Sub-Programme, five successful applicants’ projects were supported by total EUR 1,981,631.57, while Cross-Sector Programme was supported in three successful projects by EUR 354,448.

The process of project evaluation for year 2024 is on-going, and the European Executive Agency for Education and Culture (EACEA) will publish official data in the QI 2026.

One of the most important benefits for Bosnia and Herzegovina when in question participation in the Programme, other than financial one, is stepping-up togetherness with EU members, which has its special relevance in the road to the EU.

EXPORT INCREASE STOPS NEGATIVE TERND IN BIH FOREIGN EXCHANGE

The Council of Ministers of BIH adopted a piece of information from the directorate for Economic Planning on movement of macroeconomic indices for January-August 2025, which indicates that preliminary data confirm continued last year’s growth trend of economic activity in Bosnia and Herzegovina.

Data from the Statistics Agency of BIH for eight months this year show the real GDP growth of 1.7 per cent relative to the same time last year. Domestic demand (spending and investments) was the main holder of economic growth, while contribution to trade balance was slightly negative. According to available data, a negative trend in foreign exchange was stopped. In January-August 2025, export of goods from BIH was more than KM 11.1 billion, which represents a nominal increase of 600 million or 5.7 per cent relative to the same time last year.

Slowing down economic activities in EU countries and the region brough about decreased level of physical volume of industrial production in Bosnia and Herzegovina, targeting primarily mining.

In May, there were 895.3 thousand employees, less for 0.8 per cent relevant to the same month last year, while the number of registered unemployed persons was 322.1 thousand, less for 2.3 percent relative to the same month last year.

Inflation of 4.1 per cent was evidenced in Bosnia and Herzegovina in August, relative to the same month last yar, while the level of prices in total in time between January and August was higher for 3.8 per cent, and the highest increase was in food and soft beverages sectors, followed by  the goods and services, health care, alcohol drinks and tobacco, restaurants and hotels.

REPORTS ADOPTED

The Session adopted several reports, namely, on accommodation of refugees and foreigners under subsidiary protection in Bosnia and Herzegovina dr 2024 – new text, and 2024 Activity Report of Coordination for Interoperability of the Council of Ministers of Bosnia and Herzegovina. (end)