BOSNIA-HERZEGOVINA, WORLD BANK SIGN AGREEMENT

SARAJEVO, March 2 (Hina/Habena) - The Bosnian Minister of Finance Mirsad Kikanovic and representatives of the World Bank in Washington signed the first agreement on reconstruction which the World Bank is to implement in cooperation with the Government of Bosnia-Herzegovina and the Federation of Bosnia-Herzegovina, a statement from the cabinet of the Bosnian Foreign Minister Jadranko Prlic, carried by the Herzeg-Bosnian news agency Habena said today. #L# Commenting on the agreement, Prlic said that 'it is our first agreement with the World Bank. It is important that the realisation of this agreement comes at the moment when Bosnia-Herzegovina is still not a member of that international financial institution'. 'Through negotiations we managed to secure a good deal of assets from the agreement for production. It is also important to say that the majority of those assets have been secured through donations', Prlic said. The Dutch Government was the largest donator with 41 million dollars. The agreement also included a loan of 40 million dollars. The Bosnian Government and the World Bank would continue negotiations on another eight agreements, which were expected to be signed in the first half of this year, Prlic said. The total value of the project to be financed by the World Bank was 160 million dollars. The money would be used for the revival of production, help to the most destitute categories of population, investment into small- and medium-sized companies as well as for the financing of government institutions. It was expected that the realisation of the project would start mid March, the statement from the Bosnian Foreign Ministry said. (hina) rm 021140 MET mar 96