ARMY FOREIGN CURRENCY SAVINGS BOOKS HAMPER PRIVATISATION

( Editorial: --> 4457 ) SARAJEVO, Sept 30 (Hina) - The World Bank has requested the Croat- Muslim Federation authorities to immediately reach an agreement on army foreign currency savings books, as a precondition for the process of privatisation to commence, a World Bank representative said on Wednesday. The World Bank completely supports the stand that the 8 billion and 800 million German marks, which had been allocated to former Bosnian army and Croatian Defence Council (HVO) soldiers through foreign currency savings books, is a too large amount, World Bank Mission deputy head Saumya Mitra told reporters in Sarajevo. Six billion marks is the largest amount which could be included in the privatisation process on the basis of unpaid salaries for demobilised soldiers. The World Bank will grant a DM 90 million loan for the Federation budget if Croats and Muslims reach an agreement reducing the value of bonds to be used in the privatisation process to DM six billion. Another condition for the loan to be granted is the final liquidation of the Commercial Bank Sarajevo (PBS), which before the war was one of the leading banks in the former Yugoslavia. (hina) rml 302254 MET sep 98