EBRD urges Bosnia to improve business climate, tackle inefficient SOEs

"The private sector would benefit greatly from harmonised regulations and a reduction in “red tape” and para-fiscal charges", the EBRD said in its 2019-2020 Transition Report.

Additionally, Bosnia should tackle the inefficient state-owned enterprises (SOEs), as they have a negative effect on other businesses and impose a significant fiscal burden.

"They should be depoliticised and restructured, followed in some cases by a renewed and credible push for privatisation," the EBRD said.

The bank also said that Bosnia should pursue reform of its inefficient and oversized public administration, which represents a significant burden on taxpayers and strongly affects the business environment.

"The Serb Republic should also adopt as soon as possible the strategic framework of public administration reform for 2018-22, and the country should embark on developing a professional, de-politicised and merit-based civil service."

The EBRD expects Bosnia's economy to grow by 3% in 2019 and 2020.

The Serb Republic is one of two autonomous entities that form Bosnia. The other one is the Federation.