EUROPE - Pension promises made by the Bosnian Serb Republic are unrealistic leading economic bodies have warned, writes BBC Monitoring International News Reports.
The IMF, the World Bank and European Commission (EC) have concluded that the government lacks resources to implement its proposals to increase pensions and salaries by 20% by the end of the year, and to meet payments in 2004. Carrying out the plan could lead to new payment arrears, disruption to government operations and further social stress, the BBC reported.
The proposed increases will also violate Bosnia-Herzegovina (BH) international agreements with the IMF and other institutions. A potential breach will cause BH to lose over KM 300m in lending and grants and thereby render it unable to meet its pensions, salaries and other commitments.
A delegation representing the IMF, World Bank and EC has been sent to help the Bosnian-Serb authorities avert the risk.
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