AGP Executive Report

Bosnia Budget & Public Finance: The House of Peoples adopted Bosnia and Herzegovina’s 2026 state budget worth 1.58 billion BAM after a seven-month delay, using an emergency procedure that drew criticism over limited amendment rights. Telecom Performance: BH Telecom posted revenue of 275.2 million BAM in H1 2026, its strongest half-year in over a decade, helped by cost control and higher EBITDA. Foreign Shoppers & VAT: Foreign citizens spent 40.5 million BAM in BiH in the first half of 2026 and claimed 5.8 million BAM in VAT refunds, with requests down year-on-year after stricter refund rules from Aug 4, 2025. EU Funding Blockade: A senior politician warned that Bosnia remains the only country not to have implemented the Reform Agenda, saying lost EU funds could reach hundreds of millions of euros due to blockades. Business Connectivity: Sarajevo International Airport is exploring direct flights to major Spanish cities (Madrid, Barcelona, Malaga) to boost tourism and trade links. Humanitarian Aid: Türkiye says AFAD has delivered aid to 85 countries, including 60 container homes and supplies to Bosnia and Herzegovina. Social Protection: In the Federation, a new 24/7 SOS telephone line for domestic violence victims is being introduced with professional operators and detailed crisis procedures.

Italy Football Shock: Andrea Pirlo is out of contention to coach Italy after political backlash over his ambassador role for Russian betting firm Fonbet; the FIGC search is now in flux after Paolo Maldini and adviser Leonardo quit just 16 days into their reset. Bosnia EU Money: The EU approved EUR140.5m in grants for Bosnia under pre-accession instruments, targeting economic development, institution-building and reforms. Payments Upgrade: Bosnia’s Central Bank is rolling out an instant-payment system that moves money between accounts in seconds, 24/7, aiming to boost business liquidity and predictability. Labor Crunch: Foreign-worker quotas are exhausted early—businesses want quotas abolished or relaxed to ease shortages across manufacturing, construction, hospitality and retail. Foreign Trade: BiH’s minister Staša Košarac met Egyptian officials to expand trade, investment and tourism cooperation, including Expo 2027 links. City Planning: Sarajevo Mayor Samir Avdić withdrew a draft regulatory plan for Quadrant C–Marijin Dvor, after proposed changes tied to traffic and university-area protection. Social Protection: FBiH is introducing a 24/7 SOS telephone line for domestic violence victims, with trained professionals and clear coordination steps. Tourism/Heritage: Bosnia hosts the 21st International Summer School Youth and Heritage, focusing on post-conflict recovery and cultural resilience.

EU Funding Boost: The EU has approved EUR 140.5 million in grants for Bosnia and Herzegovina after the Bosnian Presidency ratified the 2025–2027 pre-accession instruments, with money aimed at economic development, stronger institutions and key reforms. Instant Payments Upgrade: Bosnia’s Central Bank is rolling out a domestic instant payment system that moves money between accounts in seconds, 24/7, improving cash-flow planning for businesses and faster transfers for citizens. Labor Crunch: Bosnia and Herzegovina has used up its 2026 foreign worker permit quota by end-May, pushing employers to call for abolishing permit quotas to ease shortages in manufacturing, construction, hospitality and retail. Tourism Links: Bosnia and Egypt discussed ways to boost tourism cooperation, including more tourist flows, training and air connectivity, plus plans tied to Expo 2027. Sarajevo Urban Planning: Mayor Samir Avdić withdrew the draft decision for the Regulatory Plan “Quadrant C – Marijin Dvor,” after proposed changes aimed at protecting the university area and improving traffic solutions. Aviation Growth Watch: Sarajevo Airport says it will soon announce further cooperation with Ryanair, signaling potential route network expansion for upcoming seasons.

EU Support for Bosnia’s Reforms: The EU has approved EUR140.5 million in grants for Bosnia and Herzegovina after the Bosnian Presidency ratified the 2025–2027 pre-accession instruments, with money aimed at economic development, stronger institutions and key reforms. Instant Payments Upgrade: Bosnia’s Central Bank is rolling out a domestic instant-payment system on July 20, promising transfers in seconds 24/7/365—boosting cash-flow planning for businesses and faster access to funds for citizens. Aviation & Tourism Watch: Sarajevo Airport says it’s preparing a joint announcement with Ryanair that could mean further route expansion in the 2026/27 seasons. Sports Integrity Meets Finance: A sports integrity group flagged suspicious World Cup betting activity, including Polymarket bets tied to matches involving the U.S. and Bosnia—adding fresh pressure on FIFA and betting platforms. Local Industry Under Court Pressure: Federation minister Vedran Lakić says the government won’t give up on the Zenica Steel Plant despite a court decision, citing jobs and industrial survival as the stakes.

Aviation & Tourism: Sarajevo Airport says it’s preparing a joint announcement with Ryanair on further route network growth for the 2026/27 winter season, after the March 2024 launch already boosted passenger numbers and connectivity. Energy & Industry: Federation Energy Minister Vedran Lakić says the government will not give up on keeping the Zenica Steel Plant running despite a court decision, framing the fight as jobs and industrial dignity. EU Culture Investment: Work has started on the EU4Culture-funded Centre for Cultural and Creative Industries Development in Banja Luka, with UNESCO and the city marking the contract signing and design presentation. Regional Business Climate: A survey from the Missouri Restaurant Association shows many restaurants in Kansas City saw lower traffic and revenue during the 2026 World Cup—useful context for how major events can cut both ways for hospitality. Governance & Oversight: The IOC says it won’t investigate Gianni Infantino’s alleged role in reversing Folarin Balogun’s World Cup ban, saying the complaint is outside its scope. Public Finance Watch: European Commission data points to public debt easing in parts of the Western Balkans, with Bosnia and Herzegovina’s ratio rising moderately by 2025.

Ryanair Expansion Watch: Sarajevo Airport says it’s preparing a joint announcement with Ryanair on further route growth for the 2026/27 winter season, after the carrier’s March 2024 launch already boosted passenger numbers and connectivity. Energy & Industry: Federation Energy Minister Vedran Lakić says the government will keep fighting to preserve Zenica Steel Plant after a court decision, stressing jobs and domestic industry. EU Culture Investment: Work has officially started on the EU4Culture-funded Centre for Cultural and Creative Industries Development in Banja Luka, with UNESCO and the city marking the contract signing. Bosnia Gas Costs: Gazprom Export raised the natural gas supply price to Energoinvest by 14.42% for Q3, pushing the case for the Southern Interconnection pipeline. Sports Integrity & Local Business: Bosnia state police detained Borac FC president Zvjezdan Misimović in a financial inquiry, while wider World Cup betting irregularities and FIFA controversies continue to dominate headlines. Travel Demand Shift: Turkey bookings fell up to 60% for Bahraini travelers, with Bosnia among the beneficiaries as tourists look for cheaper alternatives. World Cup Money: FIFA confirmed a record $727m prize pool for the 2026 tournament, with Bosnia listed among teams receiving $12.5m.

World Cup Integrity & Betting: The Council of Europe’s Group of Copenhagen flagged seven 2026 World Cup matches for possible betting irregularities, including Spain’s goalless draw with Cape Verde and the Folarin Balogun case after FIFA lifted his ban following political pressure—raising fresh questions for FIFA’s integrity process. Football Governance: UEFA president Aleksander Čeferin boycotted the final in protest over FIFA’s Balogun decision, underscoring a wider political split around sport. Bosnia Security & Trade: Bosnia’s Foreign Ministry warned against actions threatening international maritime routes and urged peaceful dispute resolution under UN rules. Energy Costs: Gazprom Export raised natural gas supply prices to Energoinvest by 14.42% for Q3, with officials linking the move to the push for Bosnia’s “Southern Interconnection” pipeline. Law Enforcement: State police detained Borac Football Club president Zvjezdan Misimović for questioning in a financial inquiry tied to warrants across multiple sites. Regional Public Finance: A Western Balkans debt snapshot shows Bosnia’s general government debt at about 27% of GDP in 2025, with a projected gradual decline. Tourism Demand Shift: Bahrain travel agents report bookings to Turkey down up to 60% this summer, with some travelers switching to Bosnia and nearby destinations. Culture & Film: Sarajevo Film Festival will honor Iranian director Asghar Farhadi with the Honorary Heart of Sarajevo and run a retrospective as part of its Tribute To programme. Local Sport Event: Mostar’s traditional 460th Old Bridge jumps are set for Sunday, July 26, with regional divers expected.

Maritime Security: Bosnia’s Foreign Ministry warned against actions that threaten freedom of navigation, maritime route safety and stability of international trade, urging peaceful dispute resolution under UN and international law. Police & Finance: State police detained Borac Football Club president Zvjezdan Misimović for questioning in a financial inquiry, with warrants covering four sites in Banja Luka and Gradiška. Energy Costs: Gazprom Export raised natural gas supply prices to Energoinvest by 14.42% for Q3, renewing pressure for Bosnia’s “Southern Interconnection” pipeline and alternative sourcing. Instant Payments: Bosnia and Herzegovina launched an EU-supported domestic instant payment system, joining Montenegro in rolling out faster retail transfers. Jobs & Industry: A major magnesium plant planned near Kupres was abandoned after the investor withdrew its environmental approval request, despite expectations of up to 600 jobs. Labor Oversight: Bosnia’s Federal Ministry of Labor requested urgent inspections at PE Komunalno d.o.o. Mostar after reports of termination of contracts for 18 workers. Regional Support: Croatia approved funding for 229 projects for Croats in BiH, including education, health, culture and agriculture. Sports Integrity Watch: A European sports integrity body flagged suspicious World Cup betting patterns tied to Folarin Balogun’s red-card reversal, demanding FIFA explanations.

Banking & Payments: The Central Bank of Bosnia and Herzegovina has moved ahead with instant payments, highlighting the launch of its Domestic Instant Payment System and the broader push to modernize weak internet infrastructure that can affect banking and healthcare services. Energy & Fuel Security: Serbia approved the release of operational euro diesel reserves to keep domestic prices stable after low Danube water levels and transport limits disrupted planned imports, with the measure tied to extending refinery operations. Labor & Public Utilities: Bosnia’s Federal Ministry of Labor requested urgent inspection supervision in Mostar after dismissals of 18 workers at PE Komunalno d.o.o., citing concerns over disciplinary procedures and workers’ right to defense. Croatia–BiH Economic Ties: Croatia’s government approved millions of euros for projects of interest to Croats in BiH, while officials also discussed strengthening trade and investment links with the US and cooperation with Sarajevo’s municipal leadership. World Cup Integrity Fallout: A European watchdog flagged seven “yellow alerts” for possible betting irregularities at the 2026 World Cup, including the Balogun red-card reversal controversy that is now drawing ethics complaints and renewed scrutiny of FIFA’s integrity claims. Culture & Tourism: Sarajevo Film Festival announced its 32nd edition lineup, including an Honorary Heart of Sarajevo for Iranian director Asghar Farhadi, while a local tour operator launched Moldova-focused multi-country itineraries across the Balkans.

World Cup Integrity Under Scrutiny: A European watchdog linked to the Council of Europe flagged seven “yellow alerts” for possible betting irregularities at the 2026 FIFA World Cup, including the red-card case of U.S. forward Folarin Balogun and markets tied to match outcomes—contradicting FIFA’s claim of no suspicious activity. Ethics Pressure on FIFA: Norway’s football federation says it will consider a formal FIFA ethics complaint over Trump’s reported role in reversing Balogun’s suspension. Banking Deal Watch: RBI has reached the minimum acceptance threshold in its takeover bid for Addiko Bank, pushing the battle with Slovenia’s NLB into the final stretch. BiH Inflation Update: Federation of BiH inflation cooled to 3.9% in June, with food prices down and “Locked Prices” measures cited for easing household costs. Defense Procurement in Sarajevo: Bosnia and Herzegovina signed for 10 Turkish KANGAL-type anti-drone jammers/rifles to strengthen electronic warfare and protect key sites. Regional Infrastructure: Works are underway on new sections of the Sarajevo–Belgrade highway corridor in Semberija, including progress toward Brčko and Rača. EU Path and Politics: Croatia reaffirmed support for Bosnia and Herzegovina’s EU route ahead of October elections, stressing stability and equal rights. Business Links: U.S. embassy officials in Sarajevo met BiH leaders to discuss expanding trade and investment ties. Football Talent Pipeline: Reports say Chelsea is among the frontrunners to sign Bosnia and Herzegovina’s Kerim Alajbegovic after his World Cup breakout.

Bosnia & Herzegovina Defense Procurement: Bosnia’s Armed Forces signed a contract in Sarajevo for 10 Turkish Aselsan Kangal-type anti-drone rifles, boosting electronic warfare and protection against UAV threats, with talks for two more systems. Industrial Restructuring: Federal Energy Minister Vedran Lakić says the Federation won’t give up on saving Željezara Zenica, expecting a positive Cantonal Court decision after an appeal and defending a full takeover plan over partial leasing. Transport & Regional Trade: Works are underway on two sections of the future Sarajevo–Belgrade–Bijeljina–Brčko and Bijeljina–Rača highways in Semberija, with local leaders saying the road will open opportunities for local firms and improve export routes. Instant Payments: Bosnia launched a domestic instant payment system with EU support, aligning with wider regional moves toward faster digital transactions. Sports Betting Integrity: FIFA faces pressure after the Group of Copenhagen flagged seven World Cup 2026 betting-related notices, including market activity around a suspended-then-available player case. Local Talent in the Spotlight: Chelsea is reported as a frontrunner for Bosnia and Herzegovina’s Kerim Alajbegović after his World Cup breakout, while Sunderland is also linked. Labor Market Watch: Serbia’s fixed-term employment remains high at 14.5%, a reminder of job security gaps across the region. Politics & Elections: Sarajevo-based “Under Scrutiny” coalition reports 38 election irregularities and notes CEC sanctions totaling 22,500 KM.

Instant Payments Rollout in BiH: Bosnia’s Central Bank has launched the country’s first domestic instant payment system, letting customers of participating banks send transfers within seconds, 24/7, with Intesa Sanpaolo Banka BiH, Raiffeisen Bank BiH and Sparkasse Bank BiH among the first users—aimed at faster business cash flow and a more competitive, EU-aligned financial sector. BiH–US Economic Cooperation: Chairman of the Presidency Denis Bećirović met U.S. chargé d’affaires John Ginkel, stressing room to deepen economic ties, especially energy, and to improve conditions for new American investment. EU Enlargement & Rule of Law: A new European Commission Rule of Law Report says the EU’s rule-of-law track is broadly positive but uneven, while talks on expansion continue with a renewed push for new members. Defense Tech Procurement: Bosnia’s Armed Forces signed a deal to boost electronic warfare and anti-drone capabilities, with Turkey’s ASELSAN highlighted as a key contributor. Herzegovina Food Branding: The Herzegovinian doughnut (uštipak) was granted protected status, with the first HERC Uštipak Fest bringing 16 teams to Buna. Sarajevo Film Festival: The Sarajevo Film Festival unveiled its feature competition jury, led by actress Emily Watson, alongside Igor Bezinović, Sara Klimoska, Matthijs Wouter Knol and Athina Rachel Tsangari.

Budget Vote in BiH: The House of Representatives of the Parliamentary Assembly of BiH is set for two sessions today—an emergency session to urgently consider the 2026 Budget Law for BiH institutions and international obligations, with total revenues/receipts/financing set at 1.58 billion BAM (about 1% higher than 2025). Payments Upgrade: The Central Bank of BiH launched the country’s first domestic instant payment system, enabling 24/7 transfers in seconds; Intesa Sanpaolo Banka BiH, Raiffeisen Bank BiH and Sparkasse Bank BiH are first participants, with more banks expected to join. EU-backed Digital Integration: EU Head of Delegation Luigi Soreca congratulated the Central Bank on the TIPS Clone instant payment system and urged faster adoption of the needed Federation legislation to advance BiH toward the EU single digital market. US Investment Talks: Željko Komšić met the US chargé d’affaires, John Ginkel, discussing potential new US investments in energy, infrastructure and real estate, plus reform steps to improve the investment climate. Transport Economics: A conceptual study says restoring the Una railway could generate nearly 350 million euros in economic benefits over 30 years, but requires an interstate agreement with Croatia due to the route crossing the border seven times. Fraud Controls: The ACFE highlighted fraud-fighting and whistleblower work, spotlighting anti-fraud auditing and public-money tracking approaches.

Instant Payments Upgrade in Bosnia: The Central Bank of Bosnia and Herzegovina launched a domestic instant payment system, letting participating banks process transfers within seconds 24/7, with Intesa Sanpaolo Banka BiH, Raiffeisen Bank BiH and Sparkasse Bank BiH among the first users; the EU also backed the move via a €2m project tied to BiH’s path toward the EU single digital market. US Investment Talks in Sarajevo: Bosnia’s Presidency Chair Željko Komšić met the US embassy’s John Ginkel to discuss intensifying American investment in energy, infrastructure and real estate, plus reform steps to improve the investment climate and the process around selecting a new High Representative. Digital Resilience Warning: A new study flags weak internet infrastructure as a risk to banking, healthcare and government services during major outages, underscoring the need for stronger digital backbone and cybersecurity readiness. World Cup Spillover Economics: The 2026 FIFA World Cup delivered an estimated $2.1bn economic boost to the New York region in its early matches, with hotel revenue and local hospitality benefiting—another reminder of how sport can move real money. Fraud-Fighting Spotlight: The ACFE honored fraud fighters and whistleblowers, highlighting modern schemes and the growing role of auditors in spotting financial misconduct.

Instant Payments in Bosnia: The Central Bank of Bosnia and Herzegovina launched a domestic instant payment system, letting customers of participating banks transfer money within seconds, 24/7, with lower fees than the old giro clearing route—an upgrade aimed at faster business cash flows and easier household access to funds. Regional Rollout: Montenegro also started instant payments on July 20, with Bosnia connecting banks in stages and an initial transfer limit set at 5,000 BAM. Local Business & Tourism: Široki Brijeg’s 7th Street Food Fest runs July 23–26, bringing 14 exhibitors and chefs from Bosnia and the region, with a focus on boosting the city’s visitor draw and local economy. World Cup Money & Politics: FIFA says the 2026 World Cup delivered record financial results, while coverage also highlights how U.S. political involvement and FIFA disciplinary decisions sparked backlash—an issue that will keep shaping how sports governance is discussed in the region. Sports Tech & Connectivity: SpeedOf.Me’s H1 2026 broadband report ranks the UK 14th globally, a reminder that digital infrastructure remains a key business factor beyond sport.

Instant Payments: Montenegro and Bosnia and Herzegovina launched instant payments on July 20, letting bank customers transfer money within seconds 24/7; BiH will connect banks in stages after technical tests, with an initial 5,000 BAM cap per transfer and QR payments planned later. EU & Western Balkans Reform Watch: The EU’s Growth Plan progress is uneven: Montenegro, Albania and North Macedonia are broadly on track, while Serbia, Kosovo and Bosnia and Herzegovina lag behind as funding is tied to reform milestones. Governance & Infrastructure Dispute: Milorad Dodik renewed the Brčko District fight via a new proposal for the Belgrade–Sarajevo highway route through Brčko, arguing RS ownership and obligations while the 2022 agreement faces continued obstruction. World Cup Business Backdrop: Spain’s 2026 World Cup win closed a record-setting tournament, but FIFA’s commercial push and political interference—highlighted by the Balogun red-card reversal controversy—kept business and governance questions in the spotlight. Public Health: UNICEF and WHO report global childhood immunization is still below pre-pandemic levels, with measles coverage short of herd-immunity needs and outbreaks in 57 countries. Cultural Assets: A report highlights Bosnia and Herzegovina’s museums, libraries and archives preserving rare manuscripts despite weak state support and limited budgets.