09/19/2006 OHR Sarajevo

OHR Supports International Financial Institutions on Veterans’ Law

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The OHR today expressed its support for the unanimous position of the international financial institutions in Bosnia and Herzegovina, that the Federation Law on Rights Of Demobilized Defenders And Members of Their Families, if enacted in its present form, would bring financial havoc to the Federation budget.

In addition, the Law would not benefit veterans, as the envisaged transfers would be impossible to maintain, and the broad economic consequences would likely be a reduction in employment and living standards.

The Federation Government adopted the Law on Monday, and the Federation House of Representatives adopted it on Tuesday.

The World Bank, the IMF, and the EC pointed out that, together with existing obligations, passage of this law would mean that total annual transfers to veterans and the families of fallen soldiers would amount to around half of the Federation budget.

This is unsustainable. Making commitments to war veterans that simply cannot be kept, one week before an election, can only be viewed as a fundamental breach of faith on the part of the authorities.