They signed a memorandum confirming the activation of more than EUR 7.4 million next year.
Bosnia obtained the money under the 2012 IPA pre-accession fund and its activation is not subject to a recent European Commission decision to withhold EUR 45 million in IPA funds for 2013 because of a stalemate in Bosnia's political reforms.
Sorensen said after the signing that for the EU, it was very important to overcome the past through war crimes trials and contribute to the country's future stability.
That's imperative to head for the future, he said, recalling that more than 1,300 war crimes cases were pending.
He said the EU would monitor how the approved funds were being spent over the next two years.
The president of the Bosnian Judicial and Prosecutorial Council, Milorad Novkovic, said 20 new prosecutors would be hired very soon thanks to the financial aid to deal with the war crimes cases.
The money will also be used to strengthen the judicial infrastructure.