ECONOMIC SITUATION IN SERB ENTITY IS DRAMATIC

SARAJEVO Nov 22 (Hina) - The refusal of the authority in the Serb entity in Bosnia-Herzegovina to fully fulfill their Dayton Agreement commitments caused large cutbacks in international financial help to the Republika Srpska, head of the World Bank mission in Sarajevo, Rory O'Sullivan, said on Friday. None of the international donors had not yet activated resources intended for the Serb entity. The main reason was the refusal of the authorities in Pale to extradite war crimes suspects and allow the return of refugees, O'Sullivan said. He added that, as a result, the economic situation in the Serb entity was dramatic in comparison with the situation in the Bosnian Federation. #L# The annual rate of economic growth in the territory of the Bosnian federation at this moment amounts to between 35 and 40 percent, and according to some estimates, it even reaches to 50 percent. In the Republika Srpska the growth remains at zero, or even moves in a negative direction. Incomes were three times smaller than in the Federation, inflation reached 65 percent while there was almost no inflation in the Bosnian Federation, O'Sullivan told Friday's news conference. The international community has set aside 5.1 billion dollars fro reconstruction programmes in Bosnia-Herzegovina, out of which the Bosnian Federation should receive 3.7 billion dollars and the Serb entity 1.4 billion dollars. At the moment, the World Bank is participating with 325 million dollars in the financing of 13 different projects of urgent reconstruction which have been estimated at 1 billion, 45 million dollars. Out of the total amount, 98 percent of resources have been set aside for reconstruction in the Bosnian Federation. Only two percent have been set aside for the Serb entity - for clearing of mines and infrastructure. (hina) lm jn 221540 MET nov 96