Germany writes off part of Bosnia's debt
The deal was conditional on an agreement by Bosnian authorities to allocate 20 percent of that amount to development projects.Sarajevo -- Germany signed an agreement Tuesday to write off 20 million euros (26 million dollars) of debt owed it by Bosnia, a Bosnian government official said.
But the deal was conditional on an agreement by Bosnian authorities to allocate 20 percent of that amount -- 4.0 million euros -- to development projects, according to a spokeswoman for Bosnia's finance ministry, Ljerka Bojic.
The funds would be used to rehabilitate two hydroelectric plants, she added.
Bosnian Finance Minister Dragan Vrankic and officials from the state-owned German bank KfW signed the accord, Bojic said.
With the fall of former communist Yugoslavia in the 1990s, Bosnia -- as a member of the Yugoslav federation -- inherited almost 50 million euros in debt toward Germany.
The German government wrote off a first instalment worth 20 million euros in 2006 and Bojic said talks had begun on forgiving the remaining part of the debt.
Bosnia is still recovering from a 1992-1995 war that claimed at least 100,000 lives and devastated its economy.