WORLD BANK GRANTS FIRST CREDIT TO REPUBLIKA SRPSKA

SARAJEVO, Jan 20 (Hina) - Croat member of the Presidency of Bosnia- Herzegovina Kresimir Zubak and director of the World Bank Office for Bosnia-Herzegovina, Rorry O'Sullivan, signed in Sarajevo on Tuesday an agreement on two credits intended for reconstruction of the country, including the most important financial support for the Bosnian Serb entity so far. According to O'Sullivan, the World Bank will grant US $17 million to Republika Srpska for the project of reconstruction worth US $65 million. The remaining funds will be ensured by the European Union, Norway, Italy, Austria and Great Britain. O'Sullivan confirmed a decision of the international community that funds be granted to only those municipalities in which local authorities support the implementation of the Dayton Agreement. The Foca municipality, in eastern Bosnia, which should have received funds from the credit, has been subsequently excluded from the project because the Office of the International High Representative had estimated that the local authorities were providing refuge to war crimes suspects. The second credit worth US $44 million has been intended for the reconstruction of the gas supply system in Sarajevo. The World Bank's share in this credit is US $10 million. Both credits were approved with a 35 year time of repayment without any interest, with a ten year grace period. (hina) lm mm 201455 MET jan 98