“The International Monetary Fund (IMF) warned a Bosnian region’s authorities on Monday against new legislation to increase war veterans’ benefits, saying it could threaten long-term financial stability.

The lender’s Executive Board last month postponed at the last minute a final meeting for a review of Bosnia’s loan programme, which would unlock fresh aid, over cabinet decisions to increase benefits for veterans from the 1990 war and public sector wages.

Bosnia is made up of two autonomous regions, the Bosniak-Croat Federation and the Serb Republic, which are the main recipients of the lender’s aid.

The IMF said the Serb Republic has violated terms agreed under its loan deal after its parliament last week approved a bill raising wages by up to 12.5 percent.” (Reuters)