Raffi Gregorian was speaking to the press after a session of the Defence Reform Commission, whose work he coordinates in Bosnia on NATO's behalf.
He said the commission concluded the two entities' army drafting and reserve systems did not correspond to the country's requirements.
Gregorian said that as far as NATO was concerned, the systems must be eliminated.
He said the Croat-Muslim entity spent EUR19.4 million on drafting a year, while the Bosnian Serb entity spent half that amount.
According to him, all analyses showed the upshot were insufficiently trained soldiers.
He said Bosnia-Herzegovina was dangerously late with adopting amendments to the law on defence and the law on services in the armed forces.
He added the amendments should be adopted by July so as to provide for effective supervision of the armed forces on the state level, which is a condition to draw closer to NATO.