Bankruptcy

Recognising that an effective insolvency procedure could play a significant role in improving the economy and the overall development of the country, Bosnia and Herzegovina has implemented a profound and radical reform of insolvency proceedings which can lead to an exit from the financial crisis and the revival of enterprises by increasing their economic value.

These activities were supported by USAID, distinguished international experts and consulting firms.

Applying the standards and practices of the European Union and the developed world, the new bankruptcy procedures came into force in 2003.

The new laws ensure a swift and efficient insolvency procedure, providing for two main types of proceedings, namely the restructuring and liquidation of the enterprise (the debtor).

The introduction of the new bankruptcy law in BiH was accompanied by extensive training programmes for the key players in conducting bankruptcy proceedings.

The implementation of the new insolvency procedure has so far yielded exceptionally good results, significantly accelerating both restructuring and liquidation, increasing payments to creditors and preserving jobs across various industries in all regions of Bosnia and Herzegovina.

Furthermore, the new insolvency procedure has created a range of new opportunities for both domestic and foreign investors, offering office and production space for starting a new business on extremely favourable terms, as well as an abundance of opportunities for restructuring and improving existing enterprises or production programmes.

You can find more information about the bankruptcy procedure on the FIPA website: