EU approves 39M euro financial crisis response package for Bosnia and Herzegovina

August 11, 2009 10:04 pm 

BRUSSELS, Aug. 12 — The European Commission said here on Tuesday that it has adopted a program of 39 million euros (54.6 million U.S. dollars) to help Bosnia and Herzegovina mitigate the impact of the financial and economic crisis.

The grant finance "will support the development of small and medium-sized enterprises and provide significant investment in infrastructure in the transport, environment, and energy sectors," said the European Union's executive commission in a statement.

Funding would be granted also to the Deposit Insurance Agency to enable it to prevent deposit outflows due to the financial crisis, it added.

The grant would trigger substantial loan financing from the International Financial Institutions such as the European Investment Bank and the European Bank for Reconstruction and Development, the Commission said.

The money has been allocated under the Instrument for Pre-accession Assistance envelope for Bosnia and Herzegovina.

A second program for Bosnia and Herzegovina to ensure the continuation of important institution-building efforts in the country will be adopted by the European Commission in autumn. (PNA/Xinhua) LDV/ebp


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