Financial transparency and data manipulation concerns in Bosnia and Herzegovina and Montenegro

Reports highlight concerns regarding financial transparency and data presentation in Bosnia and Herzegovina and Montenegro. In Bosnia and Herzegovina, the rise of business fraud is linked to the manipulation of financial statements through 'creative accounting.' This practice, involving accountants, managers, and sometimes regulators, poses a threat to the financial stability of companies and the state, often resulting in unexpected tax liabilities and penalties for capital owners.

In Montenegro, the Ministry of Finance has been accused of manipulating economic perceptions by misrepresenting GDP growth data. The Ministry compared Montenegro's 3.8 percent growth rate to the Eurozone's 1 percent growth to make the figure appear more impressive. However, critics argue this is a methodological error known as the 'low base effect,' noting that Montenegro should be compared to similar transition economies like Croatia and Slovenia rather than the much larger Eurozone economies.