Bosnia's Central Bank holds back €100 million payment amidst asset concerns

The Central Bank of Bosnia and Herzegovina (CBBH) has stated that it will not transfer €100 million to the state budget as long as there is a potential threat to its assets and to monetary and financial stability. This position was initially communicated by the CBBH and was reiterated on Wednesday by Governor Jasmina Selimovic.
This decision follows the Council of Ministers of BiH's adoption on April 22nd of a proposal by BiH Finance Minister Srdjan Amidzic to settle a debt owed to the Slovenian company "Viaduct" using part of the CBBH's profit from the previous year, which amounted to 200 million Bosnian marks (approximately €102 million).
Governor Selimovic held a working meeting on Wednesday with members of a joint commission. Following the meeting, she addressed the media, stating, "The Central Bank of BiH held a meeting with members of the joint commission, and we presented a retrospective of the Viaduct case. Until this case is resolved, we will not execute the transfer of a portion of the net profit."
She further emphasised, "We remain committed to protecting the interest of the Central Bank of BiH. We have an obligation to protect the financial system of BiH, and that is what we are doing."
The debt to "Viaduct" originated after the Government of Republika Srpska (RS) breached the terms of a concession agreement for the construction of two hydroelectric power plants on the Vrbas River, which had been granted to the Slovenian company.
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