The president of the Bosnian and Herzegovinian (BiH) entity Republika Srpska (RS), Milorad Dodik, almost three months ago issued an ultimatum to the banks operating in this entity to return 150 million BAM of citizens’ deposits, which he claims were withdrawn to support the economy in Austria and Germany – otherwise, they will be shut down. However, as Austrian media reports, the affected banks have not publicly responded to this threat so far, and neither Dodik nor his associates have mentioned it.
Speaking about the operations of banks that, due to United States (U.S.) sanctions, refuse to cooperate with the institutions and Government of RS, Milorad Dodik told them that this would no longer be tolerated.
“We lived under circumstances where we were severely constrained by the intervention of the former U.S. administration, which pressured our commercial banks and made them irresponsible toward RS, prevented those banks from cooperating with our public institutions, primarily the budget and the Government, but that time is over. I know it’s over,” said Dodik.
“We will no longer want to understand or support any bank that does not cooperate with ours. In the end, I am sending them a very serious message, and we know who they are. You have taken 750 million of these citizens’ deposits abroad to launch failing economies there – the economies of Austria and Germany. You bought 150 million in bonds abroad with our deposits. You have three months to return that to RS, that is our money. If you don’t return it, we will shut down. Okay? Do you think we can’t? You will see that we can. Return our money. That is the money of these citizens. What do you think, that we are fools here? That you will take 750 million of our deposits in these circumstances and place them in accounts somewhere abroad? To strengthen your parent banks and your parent companies, parent countries, and then say that RS is unsuccessful. Return it within three months. Break the term on 150 million, and return it here. Return everything and notify us that you have returned it; if you don’t, you will be shut down on the 91st day,” he added.
This statement is from January 23rd. That means if Dodik really intends to carry out his threat to the banks, he has only two more days to present his plan for shutting down financial institutions in RS and inform the public about it.
“It is interesting, however, that the affected banks have not publicly responded to this threat so far. Also, there are no indications that the requested funds have actually been returned. Since the ultimatum was announced, neither Dodik nor his associates have returned to the topic – which raises doubts about the seriousness of the threat itself,” Austrian media reported.
Moreover, it was reported that the lack of action so far on this issue “further strengthens the impression that this is just another unfounded threat that in the end will not be carried out.”
Austrian media notes that independent experts warn of the serious consequences of such a move. Namely, the forced closure of banks would seriously shake confidence in the financial system, lead to the freezing of private and business deposits, and cause an economic crisis in the region – with potential consequences also for the Austrian and German parent companies of the banks operating in RS.
