BOSNIA AND LONDON CLUB SIGN DEBT REPAYMENT AGREEMENT

SARAJEVO, July 1 (Hina) - Bosnian government officials and the international coordination committee representing London Club banks signed an agreement on Monday night on the mode of repayment of Bosnia- Herzegovina's foreign debt. US special envoy for Bosnia-Herzegovina Robert Gelbard said in Sarajevo on Tuesday that very favourable solutions had been achieved and that they would be of great benefit to all the people of Bosnia- Herzegovina. Under the agreement, Bosnia-Herzegovina will repay only the principle of the debt it inherited from the former Yugoslavia as the creditors have written off interest. The country's overall debt to the London Club has thus been reduced from an original 1.4 billion to 404 million US dollars. Bosnian Foreign Trade Minister Hasan Muratovic said that the debt would be repaid over 20 years with a seven-year grace period. The first 150 million dollars will be repaid in equal monthly instalments while the remaining 250 million will be repaid only when and if Bosnia-Herzegovina attains a gross national income of 2.800 dollars per capita. Co-chairman of the Bosnian Council of Ministers Haris Silajdzic said that the agreement provided access to international financial institutions, including negotiations with the Paris Club on settling the USD 853 million debt. (hina) vm mm 011755 MET jul 97