November 15 (SeeNews) - Bosnia's Federation will get a 28.3 million euro ($31.2 million) loan from the International Bank for Reconstruction and Development (IBRD), part of the World Bank Group, to support its banking sector, the entity's parliament said on Friday.
In particular, the upper house of the Federation's parliament has approved a decision to accept the financing, which represents 50% of a bigger 56.6 million euro IBRD loan intended to support the banking sector in the whole of Bosnia and Herzegovina, the parliament said in a statement.
The Federation is one of the two independent entities which comprise Bosnia and Herzegovina. The other is the Serb Republic.
Under the agreement, the Federation has to repay the financing in 32 years with a 7-year grace period. It has a variable LIBOR-based interest rate, a starting fee of 0.25% and a loan maintenance fee of 0.25%.
The project aims to improve the regulation and supervision of domestic banks, to resolve the weakness in the banking system, to establishing a new restructuring framework for banks, as well as to strengthen the governance and operations of the development banks in Bosnia's two entities.
($ = 0.907555 euro)