BOSNIA SETTLES DEBTS FOR 2002

SARAJEVO, Jan 10 (Hina) - Bosnia-Herzegovina during 2002 successfully settled all its foreign debts on time, the country's Council of Ministers (i.e. government) stated on Friday referring to a statement by Treasury Minister Ante Domazet. #L# The statement explains that around 235.4 million convertible marks (around 120 million euros) were secured to cover the payment of foreign debts last year, engaging eight per cent of exports realised. Virtually 56 per cent of the debt paid relates to the principal amount of loans while the remaining 44 per cent was secured to cover the payment of interest rates. Minister Domazet noted that significant funds were secured from the World Bank and the International Monetary Fund which also enabled the regular repayment of foreign debts. Bosnia's total foreign debt has reached 4.50 billion KM (about 2 billion euros). Negotiations are underway relating to unregulated debts such as a loan of US$20 million that was approved to the country in 1993 by Pakistan. The Treasury Ministry concludes that Bosnia is considered to be moderately indebted because its foreign debt amounts to around 51.2 per cent of the country's Gross Domestic Product in 2002. It is estimated that the net value of that debt is lower as the repayment periods are longer and interest rates lower than the ones on the market. (hina) sp ms