INT COMMUNITY TO CONTINUE FINANCIAL ASSISTANCE TO BOSNIA

SARAJEVO, May 18 (Hina) - A donors' conference on Bosnia- Herzegovina, to be held in Brussels on May 20 and 21, will complete the first round of international financial aid, intended for the reconstruction of Bosnia-Herzegovina, but the country can already count on considerable foreign donations in the future. A spokesman for the European Union Mission in Bosnia, Ivo Ilic Gabara, confirmed Tuesday in an interview with Hina, that the Brussels meeting would present a new plan of assistance to follow the first round of donations. Gabara could not confirm the concrete amounts but Bosnia's Minister of Foreign Trade and Economic Relations, Mirsad Kurtovic, recently told the Sarajevo media that by 2003 his country could expect additional funds for reconstruction amounting to US$2.3 billion, to be granted by the World Bank and European Union. The two institutions will officially chair the Brussels conference. EU's spokesman Gabara confirmed it was expected that donations, worth at least one billion euros, would be granted at the conference, which would mean the completion of the promised assistance package of US$5.1 billion. The governments of Bosnia's two entities have prepared special development plans, to be presented to possible donors. In a three-year period, which ends this year, the European Union only has directed one billion euros to Bosnia-Herzegovina. The funds were granted for concrete projects and under strict terms. So far, a considerably larger portion of foreign donations have been directed to the Croat-Muslim Federation. According to the Office of the High Representative (OHR), in 1998, 75% of all donations were directed to the Federation, whereas the Serb entity of Republika Srpska received the remaining 25%. A deputy to the High Representative in charge of economic affairs, Didier Fau, said the ratio should be balanced this year. According to unofficial sources, Bosnia-Herzegovina could be granted additional funds because of damage caused to its economy by the Yugoslav crisis. More than 80% of companies from Republika Srpska were oriented towards the Serbian market, which practically does not exist any more. Local authorities in the entity claim the damage amounts to at least DM700 million. Despite considerable foreign investments, the country still feels the far-reaching consequences of the war. According to the latest statistical data, the production rate in the Federation now stands at 18% of the pre-war level, the average salary is DM360 and there are more than 400,000 job-seekers. The indicators for the Republika Srpska are even less favourable. (hina) rml