DAMAGE CAUSED BY BORDER CROSSING BLOCKADES NEARLY BAM 17 MILLION, ACTUAL ECONOMIC LOSSES FAR GREATER

SARAJEVO, JANUARY 28 /SRNA/ – Damage caused by the blockade of border crossings in BiH has already reached nearly BAM 17 million, according to data from the Foreign Trade Chamber /STK/ of BiH, which stresses that the actual economic damage is far greater.

The Chamber surveyed business entities in BiH to assess the damage caused by blockades of freight traffic at border crossings. As stated, 61 companies responded to the survey in less than 24 hours. Total reported direct financial losses, in the event that the blockade lasts longer than three days, amount to BAM 16.75 million. If the blockade lasts seven days or more, total reported direct financial losses cited by companies would reach BAM 42.87 million, the statement said. Companies from various sectors of the economy responded to the survey, including the textile and leather industry, metal, electrical, wood, chemical and food industries, the automotive sector, logistics, freight forwarding, and other export-oriented activities. The collected data indicate a negative impact of the blockades on business operations, with companies fully or predominantly oriented toward exports to the EU market being particularly affected. This is especially true for the automotive, textile, metal and wood industries, where delivery delays directly trigger contractual penalties and lead to disruptions in production cycles. A significant number of respondents cited additional negative business consequences, including loss of customers, penalties for failure to meet contractual deadlines, termination or risk of termination of long-term contracts, temporary or complete production shutdowns, as well as possible or already announced layoffs, in some cases affecting up to 30% of employees. In addition to direct financial losses, companies particularly emphasized long-term consequences for reputation, export stability and investment security, indicating that the actual economic damage is significantly greater than currently measurable amounts. "Given that a significant number of companies were unable to precisely quantify the damage or reported only qualitative consequences, and that completed surveys continue to arrive, it can reasonably be concluded that the actual total economic damage is significantly higher than currently measurable figures," the STK said. It was emphasized that including a larger number of business entities would further significantly increase the reported losses. Considering the total number of responses received, 34 companies provided specific financial figures for one or both observed periods, with a certain number of companies providing answer to both questions, and a certain number providing answer to just one question of the survey. Out of these 34 companies, 28 companies submitted quantified amounts for both scenarios – a blockade lasting longer than three days and a blockade lasting seven days or more – while 27 companies responded descriptively without specifying exact financial amounts.