15
Mon, Jul
67 New Articles

Bosnia Buoyant Despite the Challenges: A Buzz Interview with Zlatan Balta of Deloitte's Legal Partners

Buzz Interview with Zlatan Balta of Deloitte's Legal Partners

Bosnia and Herzegovina
Tools
Typography
  • Smaller Small Medium Big Bigger
  • Default Helvetica Segoe Georgia Times

Resolving the political deadlock in one of the Bosnian entities, tackling inflation, and a shortage of workers are among the most recent challenges in Bosnia and Herzegovina, according to Partner Zlatan Balta of Legal Partners, in cooperation with Deloitte Legal.

"The political atmosphere in Bosnia and Herzegovina remains strongly influenced by the upcoming general elections in October 2022," Balta begins. "The specific political structure of the country adds additional complexity to the matter – we have weighty discussions on introducing amendments to the electoral law and the Constitution of the Federation of Bosnia and Herzegovina in order to resolve the political deadlock therein. Just a few days ago, we had large demonstrations with thousands of people in Sarajevo protesting electoral changes by the Office of the High Representative."

"The Bosnian economy was hit hard by current global events," he explains. "We have the highest inflation rate in the region, with transportation, energy, and food prices drastically increasing. The country has a problem of semiskilled or mid-skilled labor emigrating to Western European countries – recently this trend also includes highly skilled workers from the IT sector who, despite having a decent income, chose to relocate due to the political climate and better opportunities abroad." Consequently, he notes, there is a shortage of workers in sectors such as construction, with construction companies having to rely on foreign workers for some projects.

"However, aside from the inflation, the Bosnian economy is improving compared to previous years," Balta points out, adding that the main projects carried out in the past few months include infrastructure and energy. "The largest infrastructure projects in the country included investments in highways and, recently, a tender was announced for the construction of one of the largest tunnels in Europe, the 10.5-kilometer Prenj tunnel." Additionally, he says, the EBRD is financing large projects in public transportation in Sarajevo.

"Energy remains our largest export product, and there are quite a few energy projects underway," Balta adds. "The project of the Tuzla power plant seems likely to fail, with General Electric withdrawing and the Chinese contractors left hanging, but still, there are many, mostly privately funded, wind and solar park projects in the pipeline, as well as two hydroelectric power plants." Notably, he says that Bosnia and Herzegovina’s IT and tourism sectors are also developing rapidly.

Overall, "Bosnia and Herzegovina is a good place to invest, especially in keeping with the near-shoring trends resulting from recent global events. The country has a great location close to the EU, a good workforce, and lower costs, which makes it a great choice for establishing manufacturing plants, for EU companies, for example." Despite the challenges, "the vast majority of foreign investors are happy with their investment in Bosnia and Herzegovina," Balta points out.

According to Balta, there are also some developments in the tax regime. "There were recent amendments to the VAT rulebooks of the authority," he notes. "The new regime introduces an obligation for foreign transport companies to register and pay VAT when transiting the country. Additionally, foreign digital service providers have to pay VAT for streaming services purchased by users in Bosnia and Herzegovina, and have recently begun registering for this obligation."

Balta highlights the backlog in legislative activities. "Republika Srpska is a bit more flexible and quicker in terms of adopting legislation, however, the Federation still faces some challenges," he says. "There are many amendment proposals – on enforcement proceedings, on administrative proceedings, on energy, electricity, and renewable energy sources, and also the personal income tax and the contributions law." Unfortunately, "some of the existing laws are very old school (lacking implementation of electronic signatures, requiring the filing of hard copies of documents, etc.) and the proposed amendments look to resolve some of those issues, but it is not clear when they will be adopted, mostly due to the upcoming elections" he concludes.

Deloitte Legal at a Glance

Deloitte Legal Adriatic is a unique law firm consisting of teams of highly specialized lawyers, providing a vast range of legal services, and part of the commercially integrated Deloitte Legal Group. Deloitte Legal Adriatic has a team of 50 legal professionals, qualified in their jurisdictions, at offices across 8 countries: Albania, Bosnia, Croatia, Kosovo, Montenegro, North Macedonia, Serbia and Slovenia. Across the Adriatic region, our offices assist clients in this interlinked, highly complex, and dynamically developing region. We are among the largest law firms in our jurisdictions and have offices in each of the most important business centers. With a multi-lingual international team, all of whom are fluent in English, we can assist clients through our dedicated language desks including in Chinese, German, French, Russian, and many other languages, including all the Balkan languages.

Deloitte Legal Adriatic’s bundled, technology-enhanced, cross-border capable service array is a step ahead in providing clients with effective business solutions, and in these challenging times is even more important than ever before in our Adriatic Region. Our team has a collaborative orientation as well as the country specific and international legal and business savvy your business needs. Like our clients, we also know that sure success, in addition to everything else, usually requires winners to simply work both harder and smarter. We are here for our clients to do just that.

Across the Adriatic, we offer a full scope of legal services in the main commercial practice areas, including: 

  1. Banking & Finance – regulatory, real estate, syndicated projects, securitization, NPLs, restructuring, and insolvencies
  2. Business Integrity – investigations, compliance, privacy, GDPR, anti-trust, and competition
  3. Corporate – day-to-day operational, governance, and family protocols
  4. Digital – technology, media, and communications
  5. Employment – full spectrum services including mobility services
  6. Environmental – internal/external due diligence, and compliance advice
  7. GDPR – privacy issues, cyber-attacks, AI, legal, technical and organizational aspect of GDPR compliance
  8. Litigation – including tax, white collar, and discovery support services
  9. M&A – including due diligence, JVs/alliances, and post-transaction restructuring
  10. Real Estate & Construction – transactions of all types as well as development & planning
  11. Commercial – including full coverage supply-chain and distribution contractual coverage

Besides traditional legal fields, we are building prominence in growing fields such as Business Integrity, Legal Management Services, Tax Litigation & Controversy, E-commerce, and Fintech. We take pride in being able to pioneer in industries and practices ahead of many other law firms. We have the benefit of accessing cutting-edge data, technical aspects, and operational realities of various industries through our internal Deloitte collaboration with various service lines (Consulting, Financial Advisory, Tax, and others). This market intelligence is again unparalleled among  our competition and presents a wealth of opportunities for genuine insights to evolving trends.

Our client service resonates with an individual approach, genuine relationship building, dedication, availability, efficiency, and high-quality communication, on top of understanding our clients’ commercial, financial and tax needs and the requirements of the market.

Authentic synergies with our financial and tax teams, as well as our colleagues’ professional experience and education, make our firm one of the most experienced, effective and efficient firms in the Adriatic region, with expertise in a wide variety of legal fields. Our positioning on the legal markets has been noticed and recognized by both mainstream international attorneys-ranking agencies – Chambers & Partners, IFLR and the Legal 500, which distinguishes us across all significant legal areas and functions.

Local contacts:

1. Albania and Kosovo

Deloitte Legal Sh.p.k

Sabina Lalaj, Attorney-at-Law, Managing Partner

slalaj@deloitteCE.com

2. Bosnia and Herzegovina

Advokatsko društvo “Legal Partners” d.o.o.

Aida Hamur, Attorney-at-Law 

ahamur@deloittece.com

3. Croatia

Krehić & Partners in cooperation with Deloitte Legal

Tarja Krehić, LL.M. (DUKE)

Attorney-at-Law, Managing Partner

tkrehic@kip-legal.hr

4. Serbia, Montenegro and North Macedonia

Law Office Antonić

Stefan Antonić, independent attorney at law in cooperation with Deloitte Legal

santonic@deloittece.com