WORLD BANK BEGINS FINANCING BOSNIAN FEDERATION

SARAJEVO, April 18 (Hina) - The World Bank has begun financing projects aimed at ensuring the functioning of state institutions in the Moslem-Croat Federation of Bosnia-Herzegovina, the head of the World Bank's division for Central Europe, Michael Noel, told a press conference in Sarajevo on Thursday. The Bank had approved about 160 million US dollars in aid for the functioning of the Federation. About USD 16 million would be earmarked for the reconstruction of state administration buildings and the purchase of office equipment, about USD 600,000 would be set aside every month for salaries of administration staff, while USD 3.6 million was envisaged for health and social welfare and pensions. Noel said that this would help ensure the functioning of state institutions until the establishment of tax and customs systems which would provide funds for the state budget. The World Bank had also approved loans not exceeding USD 300,000 to small and medium-size companies to revive production. In the next three years the World Bank would provide about USD 400 million for the reconstruction of Bosnia-Herzegovina. (hina) vm jn 181816 MET apr 96