The agreement was opposed by four Bosniak deputies, who had also blocked the adoption of the document two months ago, saying it was discriminatory against members of the Croatian Defence Council (HVO) not holding Croatian citizenship.
The Bosnian Constitutional Court ruled on 31 March that the agreement, signed by Croatian Deputy Prime Minister Jadranka Kosor and her Bosnian counterpart Barisa Colak in December 2005, did not pose a threat to the vital interests of any of Bosnia-Herzegovina's peoples, as claimed by the four MPs.
The court also said that Croatia had the sovereign right to decide to whom it wished to provide financial support.
During the first year of implementation of the agreement alone Croatia is expected to earmark about 40 million kuna (5.5 million euros) from its national budget in aid to former HVO members and their families.