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REDUCTION OF BOSNIAN FEDERATION ARMY BROUGHT INTO QUESTION

SARAJEVO, June 21 (Hina) - The Bosnian Federation government does not have enough money for severance wages for all members of the entity's army who reported for voluntary discharge, an official said, adding that this might have disastrous consequences for the situation in the army and the defence ministry.
SARAJEVO, June 21 (Hina) - The Bosnian Federation government does not have enough money for severance wages for all members of the entity's army who reported for voluntary discharge, an official said, adding that this might have disastrous consequences for the situation in the army and the defence ministry. #L# Only 7,000 of 10,000 members of the federal army who should be dismissed from active military service this year have each received the promised severance pay of 10,000 convertible marks, Martin Francesevic, the federal defence minister's chief-of-staff, told reporters in Sarajevo on Friday. The rest have not received severance wages and it is not known when it might happen as the federal government lacks KM30 million to meet its commitment to officers who volunteered for dismissal. Defence Minister Mijo Anic said he would resign if the problem was not solved by July 1. He thinks he is morally responsible for keeping the promise given former soldiers and officers. The KM70 million the federal government has paid out came from funds Bosnia-Herzegovina received based on an agreement on succession to the former Yugoslavia. The remaining 30 million was to be secured by the International Monetary Fund (IMF), but Francesevic said this had not happened yet. He said the IMF had announced it would secure the funds by mid-June but was now saying this could occur in mid-July at the earliest. This has caused panic at the federal Defence Ministry as contracts signed with those who volunteered for dismissal state that unless severance wages are paid by June 30, the officers are automatically reinstated into active military service with the right to three wages. The Defence Ministry says it cannot resolve this problem alone and calls on the federal government to take a commercial credit and pay out the promised severance wages in order to avoid the further escalation of the issue. After reorganisation, the federal army would have 9,200 Bosniak and 4,000 Croat members. (hina) ha sb

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