The government of one of Bosnia’s two political entities, the Federation (FBiH), may lose the final tranche of an IMF loan over a law it recently adopted which increases benefits to veterans of the 1992-1995 war.

The IMF had been warning Bosnia’s authorities that veterans’ benefits should not be increased, but the recent legislation increases the budget expense by BAM 14 million. The FBiH Government confirmed to N1 there will soon be a meeting between their representatives and those of the IMF where the new development will be discussed.

The FBiH government passed the law under pressure from veterans who camped in front of the government building for more than a year.