Top-Rated Debt Collection Agency in Bosnia and Herzegovina

Your trusted Debt Collection Agency in Bosnia and Herzegovina. Submit your claim for fast, dependable service sans upfront fees. Dive into our comprehensive guide on local collection protocols.

Get free expert advice
Get free advice from the best debt collection specialists.
Portrait of Our Debt Collection Expert - Dan, who is available for free, personalized advice.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
4.97/5 Average rating from 600+ reviews
Get a FREE evaluation of your claim
Fill out the form, and get a quick and free case evaluation.
We check if your claim is valid based on the statues of limitations
We provide you with a recommended recovery strategy
We forecast the recovery rate based on our database of resolved cases
We provide you with a free quote
Reset
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

The ultimate guide about debt collection in Bosnia and Herzegovina

Navigate Bosnia and Herzegovina's debt collection landscape confidently with Debitura. Our guide leverages local expertise and international experience to simplify debt recovery. Stay prepared for every challenge in an effective and efficient manner.

Let Debitura Recover Your Claims - 100% Risk Free
Efficient debt collection with on-the-ground vetted local collectors

Debitura is not a law firm or debt collection agency. Instead, we are a platform that connects you with vetted local collection agencies and lawyers worldwide. Leverage our network of 500+ local collection agencies and lawyers across 183 markets for effective, on-the-ground debt recovery.

Hand-picked Agencies: We connect you with the best debt collection agencies and law firms worldwide.

Performance-Based Selection: Our partners are constantly tested and evaluated to ensure top performance.

Access to the Best: Only the best-performing agencies remain in our network, giving you access to superior debt recovery services regardless of where your debtors are.

No Cure, No Pay risk-free pricing

Simplify your legal framework with our 'No Cure, No Pay' standardized agreement across all local partners. Ensuring convenience for international creditors, we offer a standard debt collection agreement across jurisdictions and local partners.

No Cure, No Pay: Enjoy risk-free pre-legal debt collection with no upfront costs.

Standardized Pre-legal Agreement: Our partners adhere to a transparent and standardized debt collection agreement, streamlining your legal framework across jurisdictions and partners.

Competitive Legal Rates: For legal interventions (lawsuits, debt enforcement, insolvency proceedings, etc.), receive up to 3 competitive quotes from our network of local attorneys.

Explore our pricing

87% High Recovery Rate

Quick, professional and hassle-free B2B and B2C debt collection. 87% Consistent recovery rate – a testament to our global effectiveness. 4.97/5 Average rating from a diverse global clientele of over 5,000.

Get started quickly and for free

Register for a free profile and effortlessly upload your claim within just 2 minutes. We match your request with our expansive network of over 500 attorneys and collection firms to get you started quickly.

Competitive legal rates across the globe

Access competitive legal action rates worldwide through our network of 500+ local attorneys. For legal interventions (lawsuits, debt enforcement, insolvency proceedings, etc.), receive up to 3 competitive quotes from our network of local attorneys.

Manage your cases globally via One Platform

Consolidate all your cases worldwide in one platform. Enjoy seamless case upload, management, and reporting. Upload cases manually, via CSV files, or utilize our REST API for custom integrations with full technical support from our developers.

Understanding the Debt Collection Process in Bosnia and Herzegovina

Debt collection is a methodical pursuit of unpaid dues by individuals or businesses, often referred to as debtors. The origin of the debt can be diverse, ranging from loans, service invoices to credit card bills. At times, the collection is conducted by the primary creditor while in other cases, a specialist debt collection agency like Debitura takes the lead.

Navigating the debt collection process in Bosnia and Herzegovina involves stages from amicable negotiations to legal action and credit reporting. Mastery in this domain calls for negotiation acumen, comprehensive knowledge of local and international laws, and the delicate balance of firmness with empathy.

In this context, debtors are individuals or corporations in debt to entities known as creditors while creditors are the entities that render services or finances on credit to the debtor. The relationship is legally binding and necessitates the debtor to return the borrowed amount, usually with interest included, back to the creditor.

The Custom Approach to Debt Collection in Bosnia and Herzegovina

Initiating the collection process, we often start with the "amicable collection phase". This non-confrontational process aims to find a resolution outside of court, typically lasting 3 months. With Debitura, our service includes a "no recovery, no pay" policy enabling you to pay only a success fee if your claim is recovered. More about our pricing can be found here.

In situations where the claim remains unresolved after the amicable phase or if the claim is disputed, escalation to legal steps becomes mandatory.

The advent of the judicial collection phase comes into play for obtaining a legally enforceable court order--usually requiring representation by a local attorney in Bosnia and Herzegovina. With Debitura's 'Find a Lawyer' service, we connect you with the best attorneys from our network.

If your debtor is solvent and you have a court order, bailiffs can be utilized for enforcing your claim via salary attachment or asset capture. If your debtor is insolvent, commencing insolvency proceedings may be the last resort for claim recovery in Bosnia and Herzegovina.

In the forthcoming guide, we provide a detailed walkthrough of each phase in the debt collection process in Bosnia and Herzegovina.

Alternatively, if you wish to assign the entire collection process, we at Debitura are equipped to assist at all stages from finding an amicable solution right through to initiating bankruptcy proceedings.

01
Amicable Collection Phase: Local Expertise, No Cure, No Pay

Initiate with a friendly, out-of-court collection aimed at an amicable resolution.

This phase generally includes:

Direct Communication: Reach out to your debtor to understand the payment delay.

Payment Reminders: Use various communication methods (email, SMS, letters) for sending reminders.

Formal Notice: Issue a formal notice letter, outlining the debt and the consequences of non-payment.Our local vetted collectors handle this phase, ensuring cultural and legal appropriateness. Enjoy our "No Cure, No Pay" pricing model, meaning you only pay if the debt is successfully recovered.

Learn more about our amicable collection phase

02
Court Proceedings: Legal Action with Competitive Rates

If the amicable approach fails, escalate the matter through legal proceedings to obtain a court judgment, essential for debt enforcement.

This stage is crucial for formalizing the debt and enabling further enforcement actions. Our network of local attorneys will represent your case in court, providing expertise and familiarity with local laws.Legal proceedings are covered under our competitive legal rates, with clear and transparent pricing. Receive up to 3 competitive quotes for any required legal action.

Explore how we can assist with legal action.

03
Debt Enforcement: Effective Recovery through Local Collectors

With a court judgment in hand, you can pursue coercive measures like asset seizure and sale, referred to as debt enforcement.

Our local collectors and attorneys will execute the judgment, utilizing their on-the-ground expertise to ensure compliance with local regulations. This phase may include asset seizure, salary attachment, or other enforcement actions.

Explore how we can assist with legal action.

04
Bankruptcy Proceedings: Maximize Recovery from Insolvent Debtors

In cases where the debtor has no assets for seizure, consider filing for bankruptcy. If the debtor is already bankrupt, submit your claim promptly for verification.

Our local attorneys will assist you in navigating the complex bankruptcy process, ensuring your claim is filed correctly and promptly. This step is essential for maximizing recovery from insolvent debtors.We provide competitive legal rates for bankruptcy proceedings, with the option to receive multiple quotes to find the best local representation.

Explore how we can assist with legal action.

Get streamlined, effective recovery support at every stage. Start your claim quickly with our hassle-free, no-fee service.

Navigating Key Stakeholders in Bosnia and Herzegovina's Debt Recovery Arena

Exploring the labyrinth of Bosnia and Herzegovina's debt recovery landscape necessitates a thorough understanding of the key players involved. This includes debt collection agencies, bailiffs, and debt collection lawyers, each playing a unique role within a stringent legal structure to recover debts.

Debt Collection Agencies in Bosnia and Herzegovina

In Bosnia and Herzegovina, debt collection agencies play a pivotal role in the debt recovery process, embodying a bridge between the debtor and creditor before legal actions become a necessity. These agencies, with their deep knowledge of local laws and customised debt recovery strategies, engage primarily in the pre-legal collection phase. This entails a series of amicable procedures, including persuasive correspondence, phone negotiations, and direct meetings aimed at encouraging amicable repayment. Governed by regulations that ensure ethical conduct and protection for consumers, these agencies cannot resort to coercive or abusive practices. They operate within a framework designed to safeguard the dignity and rights of the debtor while securing the creditor's interests. Typically, a creditor might involve a debt collection agency after initial attempts to recover a debt have failed, leveraging the agency's expertise to achieve a resolution without embarking on the costly path of legal proceedings. However, it's crucial to understand that their abilities are limited to extrajudicial methods, and they cannot enforce payment or take legal action against the debtor. This underscores the importance of having a proficient agency that can navigate through the complexities of debt collection, ensuring that both parties can reach an agreeable settlement.

The Role of Bailiffs in Bosnia and Herzegovina

In Bosnia and Herzegovina, bailiffs are crucial in the enforcement phase of legal proceedings, especially when debtors fail to adhere to court mandates within an allotted timeframe. Functioning under legislative and judicial endorsement, bailiffs are tasked with executing court decisions, which may include the seizure of assets or other specified legal actions. Before a creditor can involve a bailiff, a definitive court order or decision is necessary, ensuring that the process adheres to legal standards.

Bailiffs are authorized to handle various aspects of debt recovery, including the seizure of movable and immovable assets, barring essentials exempt by legislation. Their operations are detailed in the Law on Judicial Officers and Regulation No. 202, balancing enforcement efficiency with the protection of debtors' civil rights. It's the bailiff's responsibility to implement enforcement measures smoothly, working within a framework that aims to fulfill creditors' rights while respecting legal boundaries and debtor protections.

The Crucial Role of Lawyers in Debt Recovery in Bosnia and Herzegovina

In Bosnia and Herzegovina, the engagement of lawyers is a critical step in the debt recovery process, especially when pre-legal collection efforts have been exhausted without success. Lawyers specialized in debt recovery play a pivotal role from the moment a legal pathway is considered necessary either due to the debtor's refusal to comply or when the debt's complexity exceeds extrajudicial resolution capabilities. They scrutinize the feasibility of legal proceedings, and once involved, they meticulously prepare and file the requisite legal documents, showcase a deep comprehension of the nation's debt recovery laws, and represent the creditor in courts. This ensures that the creditor's rights are staunchly advocated for, tailoring strategies that align with legal stipulations under Bosnian law. Additionally, these legal experts manage the judicial collection phase, safeguarding a sound approach that enhances the likelihood of debt recovery while minimizing potential legal ramifications for the creditor. Their contribution invariably leads to an effective and efficient recovery process, encapsulating expertise that spans across analyzing, initiating, and conducting legal actions surrounding debt recovery in Bosnia and Herzegovina.

Tap into Debitura's expert network of local debt recovery bailiffs and lawyers. Start your claim now.

Navigating Amicable Debt Collection in Bosnia and Herzegovina

In Bosnia and Herzegovina, amicable debt collection stands as a first-line approach before diving into the judicial realm. This method emphasizes understanding and cooperation, aiming to resolve debt without resorting to legal proceedings. Emphasizing a relationship-focused strategy, it safeguards the financial and business rapport between the creditor and debtor, promoting solutions that balance empathy with fiscal recovery.

The Role of Agencies in Amicable Debt Recovery

Agencies like Debitura play a crucial role in the amicable debt recovery process, particularly for creditors who might lack the local navigational capacity or the specific know-how required for effective debt collection in Bosnia and Herzegovina. Our agency steps in right from the identification phase, progressing through strategic communications via reminders or formal notices, adhering to local norms and respecting the debtor's situation. This impartial and professional mediation often achieves a higher success rate.

Benefits of Choosing Amicable Resolution

When opting for amicable resolution, both parties stand to gain significant advantages. For creditors, it translates to reduced legal costs and the preservation of valuable long-term business relationships. Debtors, on the other hand, enjoy more lenient repayment terms, easing their financial strain. This method fosters a respectful dialogue, creating an environment conducive to satisfactory financial resolutions.

Knowing When to Escalate

Nonetheless, transitioning to judicial collection may become necessary in cases where amicable efforts are met with unresponsiveness, deliberate evasion, or repeated failures to meet agreed terms. Moving towards legal action should be a judicious decision, considering the increased costs and time commitments it entails. It’s advisable to escalate only after thoroughly exploring all amicable options.

Amicable Collection Costs and Procedures

Debitura, with a decade of experience in Bosnia and Herzegovina, offers a streamlined, risk-free approach to international debt collection. With us, you start without any upfront fees, paying only upon successful debt recovery, where success fees range from 7.5% to 30%. Discover more about our pricing.

Our amicable debt recovery process typically spans 2-3 months, beginning with a simple sign-up, claim upload, and real-time progress tracking via our client dashboard. Should the need arise, we also provide options for legal action through quotes from local attorneys.

New to debt collection?
The debt collection process can be complex and daunting for those new to it. Our team of experts is here to help you understand the process and navigate it with ease. Get free expert advice on your specific case, provided by our team of experienced professionals.
5-star user rating5-star user rating5-star user rating5-star user rating5-star user rating
"Thanks to Debitura, our company was able to recover outstanding debts in Bosnia and Herzegovina. Their professional and affordable service for debt collection in Bosnia and Herzegovina is highly recommended."
Daria Petrović - Sales Director
5-star user rating5-star user rating5-star user rating5-star user rating5-star user rating
"Debitura helped us with debt recovery Netherlands and provided exceptional service. They were efficient, professional, and helped us collect what we were owed."
Katharina Schmidt - Controller
4.97/5
Average rating based on feedback from over 600 satisfied clients
87%
Average debt recovery rate, exceeding industry standards
100M+
Debt recovered for our clients in the past 18 months

Understanding the Debt Collection Process in Bosnia and Herzegovina

Debt collection is a methodical pursuit of unpaid dues by individuals or businesses, often referred to as debtors. The origin of the debt can be diverse, ranging from loans, service invoices to credit card bills. At times, the collection is conducted by the primary creditor while in other cases, a specialist debt collection agency like Debitura takes the lead.

Navigating the debt collection process in Bosnia and Herzegovina involves stages from amicable negotiations to legal action and credit reporting. Mastery in this domain calls for negotiation acumen, comprehensive knowledge of local and international laws, and the delicate balance of firmness with empathy.

In this context, debtors are individuals or corporations in debt to entities known as creditors while creditors are the entities that render services or finances on credit to the debtor. The relationship is legally binding and necessitates the debtor to return the borrowed amount, usually with interest included, back to the creditor.

The Custom Approach to Debt Collection in Bosnia and Herzegovina

Initiating the collection process, we often start with the "amicable collection phase". This non-confrontational process aims to find a resolution outside of court, typically lasting 3 months. With Debitura, our service includes a "no recovery, no pay" policy enabling you to pay only a success fee if your claim is recovered. More about our pricing can be found here.

In situations where the claim remains unresolved after the amicable phase or if the claim is disputed, escalation to legal steps becomes mandatory.

The advent of the judicial collection phase comes into play for obtaining a legally enforceable court order--usually requiring representation by a local attorney in Bosnia and Herzegovina. With Debitura's 'Find a Lawyer' service, we connect you with the best attorneys from our network.

If your debtor is solvent and you have a court order, bailiffs can be utilized for enforcing your claim via salary attachment or asset capture. If your debtor is insolvent, commencing insolvency proceedings may be the last resort for claim recovery in Bosnia and Herzegovina.

In the forthcoming guide, we provide a detailed walkthrough of each phase in the debt collection process in Bosnia and Herzegovina.

Alternatively, if you wish to assign the entire collection process, we at Debitura are equipped to assist at all stages from finding an amicable solution right through to initiating bankruptcy proceedings.

Amicable Debt Collection in Bosnia and Herzegovina

Amicable or pre-legal debt collection in Bosnia and Herzegovina is a procedure that aims to resolve debts without resorting to court action. It is more straightforward and faster than legal debt collection. A closer look into its steps, strategies and key factors is provided here.

Amicable Collection - Key Takeways
  • Extrajudicial Phase Emphasis: Prioritized as an attempt to settle without court proceedings, highlighting negotiation and agreement.
  • Categorization and Methods: Debtors segmented by payment behavior, employing tailored "soft" and "hard" collection tactics.
  • Cost and Timeline Efficiency: Amicable recovery offers both rapid resolutions and reduced costs compared to judicial methods.
  • Enforceable Documents: Agreement can be formalized for immediate enforcement if non-compliance occurs, bypassing court processes.
  • Statute of Limitations: Varies by debt type from one to ten years, with legal actions or acknowledgment resetting the period.
  • Statutory Interest Rates: Annual interest rate of 10% for late payments, promoting compliance and timely settlements.
  • Mediation and Negotiation: Services offered to achieve settlements, avoiding litigation through effective dialogue.
  • Consumer Protection: Legal framework safeguards against unlawful collection, distinguishing legitimate efforts from scams.
  • Financial Health Impact: Recovery practices consider debtor financial health, aiming for fair and transparent methods.
  • Transition to Judicial Recovery: If amicable efforts fail, the process can shift to judicial proceedings with detailed advice on success prospects.

Navigating Amicable Debt Collection in Bosnia and Herzegovina

In Bosnia and Herzegovina, amicable debt collection stands as a first-line approach before diving into the judicial realm. This method emphasizes understanding and cooperation, aiming to resolve debt without resorting to legal proceedings. Emphasizing a relationship-focused strategy, it safeguards the financial and business rapport between the creditor and debtor, promoting solutions that balance empathy with fiscal recovery.

The Role of Agencies in Amicable Debt Recovery

Agencies like Debitura play a crucial role in the amicable debt recovery process, particularly for creditors who might lack the local navigational capacity or the specific know-how required for effective debt collection in Bosnia and Herzegovina. Our agency steps in right from the identification phase, progressing through strategic communications via reminders or formal notices, adhering to local norms and respecting the debtor's situation. This impartial and professional mediation often achieves a higher success rate.

Benefits of Choosing Amicable Resolution

When opting for amicable resolution, both parties stand to gain significant advantages. For creditors, it translates to reduced legal costs and the preservation of valuable long-term business relationships. Debtors, on the other hand, enjoy more lenient repayment terms, easing their financial strain. This method fosters a respectful dialogue, creating an environment conducive to satisfactory financial resolutions.

Knowing When to Escalate

Nonetheless, transitioning to judicial collection may become necessary in cases where amicable efforts are met with unresponsiveness, deliberate evasion, or repeated failures to meet agreed terms. Moving towards legal action should be a judicious decision, considering the increased costs and time commitments it entails. It’s advisable to escalate only after thoroughly exploring all amicable options.

Amicable Collection Costs and Procedures

Debitura, with a decade of experience in Bosnia and Herzegovina, offers a streamlined, risk-free approach to international debt collection. With us, you start without any upfront fees, paying only upon successful debt recovery, where success fees range from 7.5% to 30%. Discover more about our pricing.

Our amicable debt recovery process typically spans 2-3 months, beginning with a simple sign-up, claim upload, and real-time progress tracking via our client dashboard. Should the need arise, we also provide options for legal action through quotes from local attorneys.

Explore our step-by-step guide for amicable debt collection

Step 1: Prepare Your Case

Before stepping into the arena of amicable debt collection in Bosnia and Herzegovina, ensuring the solidity of your groundwork is paramount. This preparatory phase is about gathering nuts and bolts to fortify your stance. Pay meticulous attention to:

  • The intricate details of the payment terms as agreed upon (due dates, amounts, etc.) to ensure they are lucid, enforceable, and have been communicated with clarity to the debtor.
  • The imposition of any penalties or applicable interest rates for late payments as emancipated by law. As of March 2020, the statutory interest rate for late payments stands at an annual 10%.
  • The mutual comprehension and acknowledgment of terms by both parties to bypass any future discrepancy or misunderstanding.
Statute of Limitations in Bosnia and Herzegovina

Sheathing your collection efforts within the legal time constraints is pivotal. Thus, it’s indispensable to:

  • Grasp the statute of limitations pertinent to your case, which can span from one to ten years based on the debt nature, asserting your legal standing to pursue the owed amount.
  • Chronicle the time lapse since the last payment or any form of debt acknowledgment, keeping exceptions such as war or mobilization in mind, which may halt the statute timetable.
  • Comprehend fully the implications any statute expiration has on your capacity to reclaim the debt.
Assemble Essential Documents

Organizing and having immediate access to all pertinent documentation is crucial for a smooth collection voyage. These essential documents may encompass:

  • The original contract or agreement, establishing the core of the transaction.
  • All invoices and billing statements, serving as detailed transaction records.
  • Documentation evidencing any prior communication over the debt, preserving the history of the case.
  • Proof of any partial payments, if any, documenting the debtor’s attempt to settle the debt.

Step 2: Call Your Debtor

Often, a direct dialogue could pave a path towards mutual understanding and swift debt resolution. When engaging in communication, ensure to:

  • Uphold a demeanor of empathy and professionalism, aiming to fathom the debtor's situation.
  • Explicitly communicate the call's intent and elucidate the specifics of the debt.
  • Listen attentively to the debtor's rebuttal or any deterrents to payment.
  • Discuss plausible remedies or frameworks that may facilitate the payment process.
  • Meticulously document the dialogue, archiving any resolves or significant points deliberated.

Step 3: Dispatch a Cordial Payment Reminder

Occasionally, a considerately penned payment reminder can act as a benign prompt for your debtor, nudging them towards fulfilling their obligation while maintaining rapport. Key characteristics of a persuasive reminder include:

  • A tone brimming with politeness and respect.
  • A lucid demarcation of the debt, annotating amounts and due dates succinctly.
  • A brief recapitulation of any preceding dialogues and accords.
  • A concise exposition of available payment avenues for the debtor.
  • Providing avenues for further inquiries or arrangement discussions.

Step 4: Introduce Late Payment Fees and Interest Rates

Implementing late fees and interest rates can serve as a deterrent to delayed payments and reimburse you for the wait. When enforcing these charges, keep in mind:

  • The imperative of having these charges expressly stipulated in the original agreement.
  • Adherence to the legal umbrella of Bosnia and Herzegovina is a must, with the statutory interest for late payments pegged at 10% annually as of March 2020.
  • Maintain open channels of communication regarding these charges with your debtor to ensure transparency.

Step 5: Propose a Settlement / Payment Plan

Proposing a settlement or a customized payment plan could represent a potent strategy in recuperating funds while acknowledging the debtor's financial constraints. This approach sings volumes of your flexibility and comprehension. Ensure:

  • That the agreement terms are granulated clearly and documented.
  • A mutual concurrence on the newly outlined agreement, captured through both parties' signatures.
  • Realism in the crafted plan, reflecting a sincere consideration of the debtor’s payment capacity.

Step 6: Issue a Demand Letter Prior to Legal Recourse

A well-articulated demand letter symbolizes a formal nudge to the debtor, signifying the escalation to legal pathways if the situation remains unresolved. Crafting an effective demand letter encompasses:

  • Depiction of the debt in a coherent and succinct manner, coupled with a narrative of past collection endeavors.
  • Stipulation of a definite deadline for settlement before engaging in legal confrontations.
  • A dialect that, while underscoring seriousness, remains professional and courteous.
  • Seeking legal counsel to ensure the letter aligns with Bosnia and Herzegovina’s pertinent legal standards.
Icon - Elements Webflow Library - BRIX Templates

Free Demand Letter Template

Payment Request Letter Tailored for Bosnia and Herzegovina

 

[Your Full Name or Company's Legal Name]
[Your Address]
[City/Town]
[Postal Code]
[Date when the letter is written]

 

NOTICE OF OUTSTANDING PAYMENT

OWED AMOUNT: [Exact Amount in Convertible Marks]
PERIOD FOR SETTLEMENT: WITHIN [10-Day Period] FROM THIS LETTER'S DATE

 

Dear [Recipient's Full Name or Company Name],

 

I am writing to formally notify you of an outstanding debt owed to [Your Name or Your Company's Name], amounting to [Specify the Amount] Convertible Marks. This debt arises from [briefly describe the nature of the debt, such as services rendered, products delivered, etc., including specific dates, invoice numbers, or any other pertinent details].

 

I respectfully request that the full amount be paid within ten (10) days, concluding on [Date 10 days from the Date of Writing]. Failing to address this payment within the given timeline will compel us to initiate necessary legal actions or engage a debt collection agency to reclaim the owed amount. Such measures are in compliance with both local and international regulations pertaining to debt recovery.

 

This letter serves as an official reminder and will be presented as evidence of your non-payment in any subsequent legal procedures. Should court proceedings become necessary, you may also be accountable for additional legal costs, and your credit rating could experience adverse effects.

 

Payment can be made via [Explain available payment methods, like bank transfer to a specific account, online payment portals, or other agreed methods]. If you dispute the claimed amount or need clarification, please connect with us at [Your Contact Details] without delay.

 

This is an important issue that demands immediate attention. We strongly advise taking swift action to settle the outstanding amount and avoid any further complications or legal actions.

 

Attached you will find [list any attached documents, such as detailed invoices, service agreements, delivery confirmations, or other evidence supporting the debt] for your reference.

 

Thank you for your cooperation and prompt resolution of this matter. Our preference is to resolve this amicably, avoiding the need for more formal and costly legal actions.

 

Yours sincerely,

[Your Name or Company's Name]
[Optional: Your Electronic or Physical Signature]

Get started with
amicable debt collection

Upload your claim and get started with our 100% no-cure-no-pay collection solution.

100% free
Get the best price
No-cure-no-pay
Fast collection process
High recovery rate
100%
Risk free
Upload claim!

Get started with amicable collection. 100% risk-free!
100% No Cure, No Pay

Find a Debt Collection Lawyer

Finding the right lawyer for judicial debt collection is crucial. Debitura offers a streamlined 'Find a Lawyer' service, drawing from our network of 500+ local attorneys across the globe. Describe your needs and quickly get tailored proposals from up to three top lawyers.

Your Benefits at a Glance:

  • Verified Lawyers: Access vetted professionals for reliable representation.
  • Free Matching & Quotes: Get matched and receive quotes with no hidden fees.
  • Competitive Rates: Benefit from fair, negotiated pricing for quality services.

Explore the profiles of our esteemed local partners below and take the first step towards securing your legal advantage with Debitura.

Vrazova 3, 71000 Sarajevo, Bosnia and Herzegovina
HUSKIC LAW OFFICE

An effective court and out of court debt recovery in Bosnia and Herzegovina.

Lawsuits
Legal collection
Debt enforcement
5
2012
Law firm
Branilaca Sarajeva broj 20, 71000 Sarajevo, Bosnia and Herzegovina
Zajednicka advokatska kancelarija Samardzic & Stojakovic

The joint law firm Samardzic and Stojakovic was founded in 2021 by Damir Samardzic and Darko Stojakovic, lawyers from Sarajevo, who provide quality legal services and advice at a high professional level with complete discretion and protection of clients' interests.

Lawsuits
Legal collection
Debt enforcement
2
2021
Law firm
Marsala Tita 48, 71000 Sarajevo, Bosna and Herzegovina
Baros Bicakcic & Partners

Baros & Bicakcic & Partners is the first domestic law office operating on the territory of Bosnia and Herzegovina with its headquarters in both Sarajevo and Banja Luka. The law office provides a full range of legal services across the following practice areas: Corporate and Commercial Law, Debt collection, Civil Law, M&A, Privatizations, Procurement, Litigation, National and International Arbitration, Regulatory Affairs, Competition, Insolvency, Real Estate, Labour, Restructuring, Tax and other areas.

Lawsuits
Legal collection
Debt enforcement
11
2015
Law firm
Mehmedalije Maka Dizdara b.b. - PZC Stupine Tuzla, Bosnia and Herzegovina
Advokatska kancelarija Gordan Isabegovic

Advokatska Kancelarija Gordan Isabegović, your Law firm in Tuzla, offers comprehensive legal services in civil, commercial, and labor law. Guided by unwavering commitment, professionalism and integrity, we strive to deliver optimal legal solutions for both domestic and international clients.

Lawsuits
Legal collection
Debt enforcement
1
2014
Law firm

Navigating Debt Enforcement in Bosnia and Herzegovina

Upon obtaining a court order in the judicial debt collection phase in Bosnia and Herzegovina, the road to debt enforcement commences. Managed by official bailiffs, this process empowers creditors to lay claim on the debtor's assets, ensuring their claims are satisfied.

Debt Enforcement - Key Takeways
  • Legal Basis for Debt Enforcement: Actions guided by Supreme Courts decisions and Civil Procedure Code in Bosnia and Herzegovina.
  • Role of Bailiffs: Court bailiffs enforce court judgments, including asset seizure and execution of fines.
  • Court System Complexity: Involves various levels, including basic, cantonal, and entity Supreme Courts.
  • Consumer Protection: Rights during debt collection efforts are protected under Bosnian law.
  • Repayment Documentation: Enforceable documents before a notary allow for immediate enforcement without prior court process.
  • Assets Subject to Enforcement: Includes both movable and immovable property, with certain essential items exempt.
  • Execution Process Overview: Issuance of enforcement orders by judicial officers and application of various measures by bailiffs.
  • Enforcement Measures: Items like severance pay, state social benefits, and child support are exempt from enforcement.
  • Appeals Against Decisions: Timeframes exist for objections, postponement, or modification requests of enforcement methods.

The Integral Function of Bailiffs in the Debt Enforcement Framework

In Bosnia and Herzegovina, the enforcement process heavily relies on the specialized role of bailiffs, who are instrumental in executing court mandates pertaining to debt recovery. These legal professionals are entrusted with the identification, valuation, and eventual liquidation of debtor's assets, operating under the stringent supervision of the legal system. The enforcement saga unfolds as bailiffs methodically proceed to auction off the seized assets, thereby ensuring that the proceeds are distributed amongst the creditors according to legal statutes.

Detailed Overview of Bosnia and Herzegovina's Debt Enforcement Mechanism

Initiating the debt enforcement protocol in Bosnia and Herzegovina necessitates the submission of a legal claim by the creditor, buttressed by an enforceable title that unequivocally demonstrates the debtor’s financial obligation. From judicial decrees to formalized agreements, these titles encompass a broad spectrum of legal instruments. Following this, bailiffs engage in the meticulous process of locating and securing assets—ranging from real estate to vehicles—while diligently safeguarding certain personal belongings and income thresholds essential for maintaining the debtor’s basic living standards.

Expenditures and Jurisprudential Infrastructure

Embarking on a debt recovery venture incurs a multitude of costs including legal, bailiff, and court expenses, whose magnitude is influenced by the intricacy and length of the case. Bosnia and Herzegovina's legal framework meticulously delineates the debt enforcement procedures, delineates bailiffs' responsibilities, and upholds the rights of all parties, thereby promoting a transparent and equitable adjudication process.

Antecedent Considerations Prior to Enforcement

Prior to setting in motion the enforcement action, it is incumbent upon creditors to ensure the validity of an enforceable title against the debtor. This preliminary stage often entails issuing a final ultimatum to the debtor for payment settlement. Such a measure is pivotal, as it not only paves the way for subsequent legal recourse but also accords debtors an opportunity to amicably settle their dues, hence respecting their prerogative to dispute or contest the enforcement initiative.

Explore the cost and time frame for debt enforcement

Cost Factors in Debt Enforcement in Bosnia and Herzegovina

Debt enforcement in Bosnia and Herzegovina comes with specific cost factors which depend on several variables. These include court-imposed charges, legal representative fees, and enforcement agent charges, notably court bailiffs who are pivotal in the execution phase. The complexity and value of the debt, alongside the chosen enforcement techniques such as asset confiscation, public auctions, and income deductions, significantly affect the overall expenses.

Example: In a basic scenario, the cost breakdown might look like a court filing fee approximately $300, legal representation might cost around $1,000, with enforcement agent fees potentially adding another $500, leading to a total estimated cost of $1,800. Remember, these figures serve as a simplified illustration; actual expenses can rise markedly with intricate cases or if the debtor resists the enforcement measures.

Steps and Time Frames for Debt Enforcement in Bosnia and Herzegovina

The journey of enforcing a debt in Bosnia and Herzegovina consists of a sequential process from filing a claim, securing a judgment, to the eventual implementation through enforcement activities. Each phase has its own timeline, influenced by factors such as judicial capacity, debtor's reaction, and the appeal process.

  1. Filing a Claim: Commencing with a creditor filing a lawsuit could span from several weeks to a few months, dependent on the court system's current caseload and the documentation's thoroughness.
  2. Obtaining a Judgment: After filing, the period to secure a court decision can range from a few months to even a year or more, especially if the case is complex or heavily disputed.
  3. Executing the Judgment: This final step, encompassing asset confiscation or salary garnishment, varies in time based on the assets involved, debtor compliance, and the legal prerequisites for liquidating seized assets.

Example: In an optimal scenario, the total duration from claim initiation to debt recuperation could vary from 6 months up to 2 years. Nevertheless, this timeline can significantly extend in cases presenting substantial legal challenges or requiring various enforcement strategies.

Having an understanding of the cost implications and timelines associated with debt enforcement equips creditors with the knowledge to make calculated decisions in chasing outstanding debts, balancing recovery prospects against the requisites of financial and time investments.

Icon - Elements Webflow Library - BRIX Templates
Explore asset seizure and salary attachment options

Asset Seizure in Bosnia and Herzegovina

In Bosnia and Herzegovina, the seizure of assets stands as a pivotal phase in the enforcement of debts, where creditors are empowered to claim a debtor's assets for the settlement of outstanding dues. This intricate operation may target a broad spectrum of assets, encompassing everything from property and vehicles to banking deposits and personal items of value. Launching this process mandatorily requires a legal mandate or a court's endorsement, ensuring the action's legitimacy and its conduction under legal oversight.

Upon obtaining court approval, enforcement agents, including court bailiffs, who are integral to this phase, embark on identifying and appraising the assets targeted for seizure. The legislation in Bosnia and Herzegovina affords certain protections to the debtor, safeguarding essential personal belongings and a defined portion of income, thus upholding a basic living standard. The assets, once seized, are typically liquidated, often via public auctions, with the generated proceeds directed towards creditor repayment. This procedure aims at striking a balance between the creditor's pursuit of debt recovery and the debtor's safeguard against undue hardship.

Safeguards and Limitations on Wage Garnishment

In Bosnia and Herzegovina, garnishment rights and salary attachments represent crucial legal instruments enabling creditors to intercept funds owed to a debtor. These funds can come from varied sources such as the debtor's earnings, bank accounts, or other revenue avenues. The governance of this process falls under stringent legal frameworks to ensure equity and adherence to legal norms, thereby protecting both creditors' and debtors' interests.

Wage garnishment, a prevalent type of enforcement, entails the deduction of a debtor's earnings portion directly by the employer, consequent to a court directive, and its remittance to the creditor. The legal stipulations encapsulate limits on the garnishable amount to ensure that debtors retain sufficient income for essential living costs. Debtors are entitled to challenge garnishment directives they deem unjust or those infringing upon their minimal financial sustenance. Such legal recourse is pivotal, establishing an equilibrium between empowering creditors in debt retrieval and shielding debtors against unwarranted financial strain.

Icon - Elements Webflow Library - BRIX Templates

Get started with debt enforcement. Create a free profile, and get 3 quotes from local lawyers.

Get started with
debt enforcement

Upload your claim and get 3 FREE quotes from our local collection partners.

100% free
Get the best price
No-cure-no-pay
Fast collection process
High recovery rate
100%
Risk free
Upload claim!

Insolvency Proceedings in Bosnia and Herzegovina

When debtors find themselves unable to fulfill their financial obligations upon maturity, a state of insolvency arises. Traditional enforcement mechanisms, like asset seizure via court orders, often fail in these scenarios due to a lack of recoverable assets. It is in these circumstances that bankruptcy proceedings become an important recourse. Acting as an organized process to liquidate the debtor's assets, they provide a final avenue to potentially recuperate for outstanding claims.

Insolvency Proceedings - Key Takeways
  • Pre-Bankruptcy Procedure: Introduced to restructure heavily indebted entities before formal bankruptcy, aiming for economic recovery.
  • Court System Hierarchy: Basic to appellate courts, including specialized courts for handling insolvency and bankruptcy cases.
  • Financial Restructuring Focus: Emphasizes survival and continuation of debtor's operations through financial and operational restructuring.
  • Role of Bankruptcy Administrators: Key in the process, responsible for timely reaction to financial issues and effective bankruptcy proceedings management.
  • Protective Measures for Workers: Bankruptcy legislation prioritizes the protection of workers' rights and claims related to employment.
  • Sale of Bankrupt Entities: New legislation outlines implications for creditors and continuation of the proceedings, aiming to align with EU standards.
  • Consumer Rights: In debt collection efforts involving insolvency, consumers have rights protecting them from illegitimate practices.
  • Legal Advice and Representation: Legal firms offer guidance through both extrajudicial and judicial phases, prioritizing cost-effective solutions for creditors.
  • Insolvency Documentation: Secured and unsecured creditors must submit detailed claims and evidence to the appointed insolvency administrator promptly.
  • Appeal Mechanisms: Involvement and active engagement in the process can potentially influence outcomes and enhance debt recovery chances.

The Intricacies of Insolvency in Bosnia and Herzegovina

In Bosnia and Herzegovina, the framework for insolvency and bankruptcy proceedings is built to offer a path for restructuring or liquidating businesses in financial distress. The procedure, incepted by the new bankruptcy legislation in the Federation of Bosnia and Herzegovina as of July 5, 2021, marks a significant shift. This new approach underscores the importance of pre-bankruptcy reorganization, aiming at sustaining the economic activity of indebted entities, before diving into formal bankruptcy proceedings. As part of the legal system, insolvency procedures unite the complex network of courts, including basic, entity, and appellate courts, all playing pivotal roles in managing and deciding the outcomes of such proceedings.

Protection and Rights of Creditors

Creditors are at the core of insolvency proceedings, with the new legislation outlining clear protocols for claim categorization and prioritization. Secured claims take precedence, offering a higher likelihood of recovery due to their collateral backing. For effective participation, creditors must register their claims within designated timeframes, and may find opportunities in engaging with creditor committees or in negotiating reorganization plans to enhance their recovery prospects. Additionally, the legislation asserts the importance of timely reactions from authorized individuals to initiate bankruptcy proceedings for preventing further financial destabilization.

Navigating Costs and Duration of Insolvency Proceedings

Insolvency proceedings in Bosnia and Herzegovina do incur various costs, including court fees, administrative charges, and potentially legal representation fees, which are typically deducted from the debtor's estate prior to creditor repayment. The duration of these proceedings is influenced by the complexity of the debtor's financial situation, the volume of creditor claims, and possible legal disputes. It's essential for creditors to anticipate a protracted process that could affect the debt recovery timeline. The comprehensive changes introduced by the new bankruptcy legislation seek to streamline these processes, aligning more closely with European Union standards for efficiency, protection of workers' rights, and improved debt recovery outcomes for creditors.

Explore our step-by-step guide for insolvency proceedings

Step 1: Assessing Insolvency Status

Before initiating bankruptcy proceedings against a debtor, ascertain their insolvency status in Bosnia and Herzegovina. This involves evaluating the debtor's financial health, focusing on their inability to meet financial obligations, such as outstanding invoices or consistent defaults. Familiarize with the distinction between voluntary (debtor-initiated) and involuntary (creditor-initiated) bankruptcy. In Bosnia and Herzegovina, creditors must have concrete proof of the debtor's insolvency, particularly given the legal structure that prioritizes the protection of all parties involved.

Step 2: Filing the Bankruptcy Petition

In Bosnia and Herzegovina, filing a bankruptcy petition is a structured legal process that necessitates comprehensive documentation, including financial statements and evidence of insolvency. Engage with a local legal expert familiar with Bosnian insolvency laws to ensure accuracy and compliance. The petition must be filed in the competent court based on the debtor's main business operations. In this region, the clarity, relevance, and strength of your documentation significantly impact the petition's success.

Step 3: Notification and Preliminary Hearing

Upon filing the petition, the court schedules a preliminary hearing and notifies all involved parties, including the debtor and relevant creditors. As outlined in the Bosnian legal structure, creditors should remain informed about the hearing schedule and be prepared to provide any additional documentation requested by the court. This stage is crucial for establishing the creditor's position in the proceedings within the context of Bosnia and Herzegovina’s judiciary system.

Step 4: Debtor's Defense

Under Bosnian law, debtors possess the right to contest the bankruptcy petition, providing an opportunity for them to present evidence to dispute the insolvency claim or negotiate a settlement. Creditors must collaborate closely with their legal representatives to counter any objections and reinforce their case, given the debtor's opportunities for defense within the local legal framework.

Step 5: The Hearing

The judicial hearing in Bosnia and Herzegovina represents a pivotal juncture where both parties present their arguments. Creditors are advised to present robust evidence of the debtor's insolvency, preparing by gathering all relevant documents and possibly enlisting expert witnesses. It's also critical to understand the debtor's legal rights to argue against insolvency, dispute debts, or suggest alternatives under Bosnian law. The judge's decisions at this stage are crucial, potentially setting the direction for the entire proceedings.

Step 6: Court Decision

Following the judicial hearing, the Bosnian court issues its decision, which could range from the approval of bankruptcy, dismissal of the petition, to suggesting alternative resolutions. If bankruptcy is approved, the process transitions toward restructuring or liquidation, notifying creditors to submit their claims. This underscores the importance of understanding Bosnian insolvency law and the pivotal role of the court's decision in shaping the subsequent phases of bankruptcy proceedings.

Step 7: Post-Decision Actions

Should creditors be dissatisfied with the court's decision or the handling of their claims, they are entitled to oppose the decision, appeal to a higher court, or seek judicial review within the Bosnian legal system. These actions provide a means to challenge the outcome and ensure fair treatment in the proceedings, highlighting the significance of procedural rights for creditors in Bosnia and Herzegovina.

Step 8: Navigating Post-Bankruptcy Scenarios

In the aftermath of bankruptcy proceedings, creditors in Bosnia and Herzegovina must strategically plan for debt recovery. This might involve participating in the liquidation process, negotiating payment plans or continuing litigation for asset disputes or claim priorities. Additionally, this phase may prompt creditors to reassess their credit policies to mitigate future risks within the nuanced Bosnian business environment.

Throughout these steps, the significance of thorough preparation, legal guidance, and strategic decision-making cannot be understated. Navigating bankruptcy proceedings in Bosnia and Herzegovina is notably complex and potentially lengthy. However, a well-prepared creditor, equipped with a deep understanding of local laws and judicial processes, can skillfully manage this journey to maximize debt recovery while adhering to the legal requirements.

Icon - Elements Webflow Library - BRIX Templates
Collecting cross border claims - Key Takeways
Explore cross border collection options
Icon - Elements Webflow Library - BRIX Templates

Country Risk Rating

Understanding Business Dynamics in Bosnia and Herzegovina: A Guide for International Creditors

Tap into Bosnia and Herzegovina's promising market with our in-depth guide, which covers the unique economic, political, and financial risk factors at play. This analysis of business structures and payment behaviors arms foreign creditors with crucial information for successfully operating in this diverse business environment.

Our analysis has shown that the risk of doing business in Bosnia and Herzegovina is medium. Based on this medium score, we recommend being careful providing credit and considering charging upfront payment or using credit insurance when trading if you don't know the customer in Bosnia and Herzegovina well. If possible, provide a short credit period or even better upfront payment. The medium risk analysis is based on the going through these risk factors:

Low risk
5-10
Medium-low risk
11-15
Medium risk
16-20
Medium-high risk
21-23
High risk
24-26
Low risk
5-10
Medium-low risk
11-15
Medium risk
16-20
Medium-high risk
21-23
High risk
24-26
Low risk
5-10
Medium-low risk
11-15
Medium risk
16-20
Medium-high risk
21-23
High risk
24-26
Low risk
5-10
Medium-low risk
11-15
Medium risk
16-20
Medium-high risk
21-23
High risk
24-26
Low risk
5-10
Medium-low risk
11-15
Medium risk
16-20
Medium-high risk
21-23
High risk
24-26
Key Takeways
  • Liquidity Issues: A main reason for delayed payments in Bosnia and Herzegovina is a lack of liquidity among businesses, impacting B2B transactions.
  • Complex Legal Environment: The legal framework for doing business can be complex, with different regulations across entities, affecting enforcement and dispute resolution.
  • Fragmented Market: Bosnia and Herzegovina's market is fragmented, with significant differences in business practices across its two main entities.
  • Economic Instability: The country faces certain economic instabilities and fluctuating growth rates, affecting business confidence and investment.
  • Payment Behavior: Businesses often experience extended payment terms and delays, reflecting broader challenges in the credit culture and financial discipline.
Explore Payment Trends and DSO

Understanding DSO and Payment Behaviour in Bosnia and Herzegovina

Delving into Days Sales Outstanding (DSO) metrics and payment behavior provides crucial insights into the financial health and operational efficiency of businesses within Bosnia and Herzegovina. These aspects offer a glimpse into the average time companies take to collect payments post-invoice in the broader Eastern European context, highlighting prevalent payment practices and potential delays in the market. A comprehensive analysis reveals a steady trend in B2B sales transacted on credit, accounting for 45% of all B2B sales, indicative of a risk-averse approach amidst an uncertain economic climate.

Key Challenges

Foreign creditors operating in Bosnia and Herzegovina, as part of the wider Eastern European region, face several challenges including late payments and varying levels of credit risk, impacting cash flow and financial planning. Over the past 12 months, an increase in late payments has been observed across Eastern Europe, with a 7% upsurge in overdue B2B invoices, affecting 46% of the total value of B2B sales on credit. This trend correlates with a worsening of B2B customer payment behavior, linked to several factors including temporary liquidity shortfalls, invoice disputes, and insolvency proceedings, making it imperative for foreign creditors to grasp the underlying economic conditions, industry trends, and corporate payment policies.

Exploring Solutions

To effectively navigate the complexities of the Bosnian market and by extension, the Eastern European business landscape, creditors can employ a multitude of strategies. Conducting comprehensive credit checks on potential clients, securing credit insurance to safeguard against defaults, and implementing robust accounts receivable management practices are pivotal. Moreover, understanding the region's preference for risk aversion in B2B transactions, as evidenced by the predominance of sales made on cash basis and stringent payment terms, can empower creditors to enhance risk management and improve cash flow.

Icon - Elements Webflow Library - BRIX Templates
Explore main corporate structures

Types of Corporate Structures in Bosnia and Herzegovina

  • Limited Liability Company: Simple setup, limited liability to investment, 1 KM minimum capital.
  • Joint Stock Company: Shareholders liable to investment, minimum 50,000 KM capital, shares traded publicly.
  • Partnership: General partnership - unlimited liability, minimum 1 KM capital; Limited partnership - limited liability based on investment, 1 KM capital.
  • Branch Office: Extension of foreign company, no distinct legal entity, liability extends to parent company.
  • Representative Office: No commercial activities, limited liability to parent company, no capital requirement.

What implications do the corporate structures have for creditors?

  • Creditors can pursue the assets of owners in general partnerships and unlimited liability setups.
  • Limited liability company shields owners' personal assets from creditor claims.
  • Joint stock companies offer shares as assets for creditors; limited liability based on share investment.
  • Capital requirements impact creditworthiness; higher capital signals stability and financial strength.
  • Debt collection process varies based on the corporate structure's liability distribution and asset accessibility.

Understanding the corporate structures in Bosnia and Herzegovina is crucial for creditors to assess their risk exposure and potential recovery mechanisms in case of debt default.

Icon - Elements Webflow Library - BRIX Templates
Explore detailed country risk analysis

The economic risk in Bosnia and Herzegovina

Economic risk in Bosnia and Herzegovina is high (5 out of 6). An economic risk of 5 out of 6 is high in Europe.

GDP and economic growth are critical drivers for economic risk.
The GDP of Bosnia and Herzegovina is 22,57 bn. USD (2021), growing by 7,1% per year.

In terms of the size of its economy, Bosnia and Herzegovina ranks #105 out of 183 countries and has a medium-sized economy.

Having a view at the growth rate, it is ranked #43 out of 183 countries and is therefore considered a fast-growing economy.

GDP per capita is 6916 USD, ranking Bosnia and Herzegovina number #82 out of 183 countries. This means the purchasing power of citizens in Bosnia and Herzegovina is pretty average compared to all the countries in the world.

You can see a more detailed picture of GDP and economic growth in Bosnia and Herzegovina in the table below:

GDP and economic growthLatest value
Economic growth: the rate of change of real GDP7,1%
Gross Domestic Product, billions of U.S. dollars22,57
GDP per capita, current U.S. dollars6916,44
GDP per capita, Purchasing Power Parity15634,93

Another significant influencer for the economic risk score is the inflation rate and the interest rates. You can see a more detailed overview of monetary data points in Bosnia and Herzegovina in the table below:

Monetary KPI'sLatest value
Inflation: percent change in the Consumer Price Index2%
Business credit interest rate, percent3,2%

The inflation in Bosnia and Herzegovina was 2% in 2021 which is considered a low inflation rate.

The interest rate for businesses is 3,2%.

The business environment risk in Bosnia and Herzegovina

Our analysis shows that the business environment risk in Bosnia and Herzegovina is medium-high (4 out of 6), which is a high risk score in Europe.

Economic freedom and rights determine the business environment risk in a country. You can see the critical facts for Bosnia and Herzegovina in the table below:

Economic freedom indexLatest value
Property rights index (0-100)44
Freedom from corruption index (0-100)42
Fiscal freedom index (0-100)94
Business freedom index (0-100)48
Monetary freedom index (0-100)84,1
Trade freedom index (0-100)69
Investment freedom index (0-100)65
Financial freedom index (0-100)60
Economic freedom, overall index (0-100)63

As you can see in the table, the property rights index is 44 in Bosnia and Herzegovina, which is considered low in Europe.

The business freedom index is based on 10 indicators, using data from the World Bank’s Doing Business study. The Index is 48 in Bosnia and Herzegovina, a low score for a country in Europe.

Bosnia and Herzegovina's overall economic freedom index is 63 out of 100 and is based on factors such as the rule of law, regulatory efficiency, and market openness.

The political risk in Bosnia and Herzegovina

The political risk in Bosnia and Herzegovina is very high, with a score of 6/6. This is a high political risk score in Europe.

The governance and political stability indicators are critical drivers for political risk. An overview of Bosnia and Herzegovina can be seen in the table below:

Governance and political stability indicators Latest value
Rule of law index (-2.5 weak; 2.5 strong)-0,28
Government effectiveness index (-2.5 weak; 2.5 strong)-1,04
Control of corruption (-2.5 weak; 2.5 strong)-0,64
Political stability index (-2.5 weak; 2.5 strong)-0,38
Corruption Perceptions Index, 100 = no corruption35
Shadow economy, percent of GDP29,88%

The rule of law index analyses to which extent agents have confidence in and abide by the rules of society, in particular the quality of contract enforcement, property rights, the quality of the courts, and the police's ability to enforce court orders.

When trading with businesses in a country, the rule of law index is critical as it describes your ability to enforce commercial contracts.

In Bosnia and Herzegovina, the rule of law index is at -0,28 points, with the score going from -2.5 (weak) to 2.5 (strong). Bosnia and Herzegovina has, therefore, a low rule of law index, which means it often is very difficult to enforce your contracts. We, therefore, recommend avoiding credits and recommend charging upfront payment instead.

Other drivers for the very high political risks are the very weak control of corruption, the very weak political stability index, and the large shadow economy that is 29,88% of Bosnia and Herzegovina's GDP.

The commercial risk in Bosnia and Herzegovina

In Bosnia and Herzegovina, the commercial risk score is 2/4, which in our model is a low score. This low commercial risk score is relatively low compared to the average in Europe.

The commercial risk is impacted by a country's international trade relationships. You can see some of the key facts for Bosnia and Herzegovina in the table below:

International trade and investment Latest value
Exports of goods and services as percent of GDP44,95%
Exports of goods and services, annual growth42,34%
Imports of goods and services as percent of GDP56,33%
Trade balance as percent of GDP-11,38
Trade balance, billion USD-2.78
Foreign exchange reserves, billion currency units9.48

Bosnia and Herzegovina has a total of foreign exchange reserves of 9.48 bn. USD.

Bosnia and Herzegovina has a negative trade balance of -11,38% of GDP. The implications of this is that Bosnia and Herzegovina imports more goods and services than the country exports.

The annual growth of exports of goods and services has been growing 42,34% annually - now 44,95% of GDP. Import of goods and services represents 56,33% of the GDP in Bosnia and Herzegovina.

The financing risk in Bosnia and Herzegovina

We have calculated the financing risk to be 3/4, which equals a medium risk. A medium financing risk score is relatively high for countries in Europe.

The country's banking system, efficiency, and stability influence the financing risk. You can find the extra information for Bosnia and Herzegovina in the table below:

Banking system efficiency and stabilityLatest value
Interest rates on bank credit to the private sector3,2%
Real interest rate: Bank lending rate minus inflation1,44%
Index of legal rights for creditors and borrowers (0 = weak to 12 = strong)7
Credit information sharing index, 0 (low) - 8 (high)6

In Bosnia and Herzegovina, the credit information sharing index is 6 on a scale from 0 (low) to 8 (high). This means the accessibility and quality of credit information available in Bosnia and Herzegovina is medium.

This makes it easy for you to understand the credit risk of your counterpart in Bosnia and Herzegovina. You should therefore be able to find a good local credit rating agency that can help you analyse the creditworthiness of your specific customers.

Your rights as a creditor are 7 out of 12 and, therefore, medium.

The medium financing risk for creditors also impacts the medium interest rate in the private sector of 3,2%.

Icon - Elements Webflow Library - BRIX Templates
Why Debitura is Your Trusted Authority in Debt Collection

At Debitura, we uphold the highest standards of impartiality and precision to bring you comprehensive guides on international debt collection. Our editorial team boasts over a decade of specialized experience in this domain.

By the Numbers:

  • Over 10 years of expertise in international debt collection.
  • Network strength: More than 100 local attorneys worldwide.
  • Recovery success: $100 million in debt recovered for our clients in the last 18 months alone.
  • Client trust: An exceptional average rating of 4.97 out of 5, reflecting feedback from over 600 satisfied clients.

Meet the Author: Robin Tam is the cornerstone of our content's credibility. With 16 years dedicated to international debt collection, Robin's expertise is unparalleled. As a leading partner at Debitura, Robin embodies the knowledge and integrity we stand for.

Contributors to This Guide: In our commitment to accuracy, this article has been reviewed and enhanced by esteemed local attorneys, each bringing their specialized legal insights to ensure the information we provide is thoroughly vetted and current:

Icon - Elements Webflow Library - BRIX Templates