HIGH REP ADVOCATES WRITE-OFF OF MOST OF BOSNIA'S DEBT

( Editorial: --> 8275 ) SARAJEVO, July 17 (Hina) - The international high representative for Bosnia on Friday requested the most advanced western countries for a write-off of the largest part of Bosnia's pre-war debt. High Representative Carlos Westendorp forwarded a request to G-7 group member-countries, as well as to Austria, Switzerland and Sweden, to write-off 85 per cent instead of a previously mentioned 67 per cent of Bosnia's debt, Westendorp's spokesman Simon Haselock said in Sarajevo. Bosnia-Herzegovina owes these countries the largest part of loans worth US$650 million which it was granted before the war through the mediation of the Paris Creditors Club. Bosnian authorities in Sarajevo are currently negotiating with the Club towards a possible reduction of the country's obligation. A delegation of the Bosnian Council of Ministers recently reached an agreement in principle with the Paris Creditors Club on a 67 per cent debt write-off. This is the final request which will be used at a July 23 negotiations meeting, the Council decided at a session held yesterday. According to Council vice president Neven Tomic, all interested parties agree that Bosnia-Herzegovina needs to be given special treatment in the debt write-off. Tomic however assessed that a radical write-off could not be requested as this would put Bosnia among countries which cannot make use of guarantees for new foreign investments by Paris Creditors Club member-countries. The high representative's spokesman said a 85 per cent debt write- off could in no way undermine Bosnia's negotiating position. We believe there is no point in donating funds to Bosnia which will then be used to settle old debts, said Haselock. (hina) ha jn 171345 MET jul 98