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WORLD BANK, BOSNIA SIGN US $32 MILLION LOAN AGREEMENT

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SARAJEVO, 6 Feb (Hina) - The President of the Presidency of Bosnia and Herzegovina, Alija Izetbegovic, and the head of the World Bank office in Bosnia and Herzegovina, Rory O'Sullivan, on Thursday signed an agreement on the first loans the purpose of which is to be regulated by agreement among central bodies of Bosnian state authority.
SARAJEVO, 6 Feb (Hina) - The President of the Presidency of Bosnia and Herzegovina, Alija Izetbegovic, and the head of the World Bank office in Bosnia and Herzegovina, Rory O'Sullivan, on Thursday signed an agreement on the first loans the purpose of which is to be regulated by agreement among central bodies of Bosnian state authority. #L# All three members of the Bosnian Presidency agreed to the signing of the agreement. The World Bank granted Bosnia and Herzegovina three loans amounting to US $32 million for urgent needs in all areas of the country and the creation of conditions for long-term economic growth. The money will be invested in the development of economic activities in small companies, basic medical services and financial support for the health system. Ten million dollars are intended for the financing of an agency for investment insurance, which is to give guarantees against political risks to possible foreign investors. After the signing of the agreement, O'Sullivan said that the loans are very important since they meet needs in all parts of the country and in both entities. Since April 1996, the World Bank has granted Bosnia 17 loans out of the total of 355 million dollars. (hina) rm 062038 MET feb 97

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