The New Law – published in Official Gazette number
31/18 – became effective as of April 24 2018.
The New Law applies to legal entities in the territory of
Bosnia and Herzegovina, with the exception of financial
institutions, economic entities in the process of insolvency
proceedings, or economic entities subject to garnishment or
The main novelties introduced by the New Law concerning
commercial transactions are as follows:
- The payment period must not be longer than 60 days
(unless the debtor provides adequate means of security
– a bank guarantee containing the terms
'irrevocable', 'unconditional', or 'debit-free at first call
without objection', as well as bills of exchange issued by
the bank); and
- In cases where a contract does not specify a payment
period, a default payment period of 30 days will apply.
The deadline for fulfillment of a financial obligation
- The date the debtor received the relevant invoice or
other official document;
- The date the creditor fulfilled his/her obligation
– in cases where it is not possible to determine the
date of receipt of an invoice; or
- The expiry date for the inspection of the subject of the
purchase – if such a deadline is prescribed in a
contract or under law.
It is important to note that the creditor is entitled to
default interest in cases of delays in settling the
A fine ranging between KM5,000 ($3140) and KM15,000 will be
imposed on a business entity debtor that fails to meet its
financial obligations to suppliers within the stated
A fine of between KM1,000 and KM3,000 will be imposed on the
responsible physical person in the debtor entity.
The provisions of the New Law do not apply to agreements
concluded before the New Law came into force.
Eurofast advises clients active in the market in Bosnia to
carefully review their existing settlement and collection
practices as well as future business transaction plans. Our
team is ready to assist with any advice required to ensure
compliance with the New Law.
Irena Jokic (email@example.com)
Eurofast Global d.o.o. Banja Luka
Gunduliceva 4, 78000 Banja Luka