Contentious Debt Crisis Deepens Bosnia's Political Rift

Bosnia's peace envoy, Christian Schmidt, has ordered the settling of a longstanding debt, leading to further political turmoil. Using his authority, Schmidt directed the debt to be paid from the Serb Republic's road tolls. However, Serb politicians have rejected the decision, intensifying the complex political crisis in Bosnia.

In a move that has further fueled political tensions, Bosnia's peace envoy, Christian Schmidt, has issued a decisive ruling aimed at resolving a prolonged state debt impasse. The debt deadlock has not only obstructed the 2025 budget approval but also highlighted the country's fragile governance and deep-rooted ethnic divisions.

Schmidt invoked his intervention powers, requiring the debt to be settled using the Serb Republic's portion of road toll revenues. This decision comes after the Serb Republic terminated a hydro-power contract in 2013, leading to a legal ruling that Bosnia must repay the Viaduct company. However, Serb officials assert the debt should be covered by the national central bank's profits, sparking further discontent.

The political landscape remains volatile as Serb ministers, encouraged by their Prime Minister, have vowed to contest Schmidt's ruling. This dispute underscores the ongoing governance challenges under the Dayton peace accord and a broader political crisis exacerbated by past legal rulings involving key Serb political figures.

(With inputs from agencies.)