Foreign Assistance Loans: A Case study of Bosnia and Herzegovina
The region of Southern Balkan peninsula has never been completely stable. Former Yugoslavia was not able to avoid the invasion from the Turks and Austrians, World Wars, or various internal civil wars and divisions. After three bloody years, Bosnia and Herzegovina claimed its independence from Socialist Yugoslavia on March 1, 1992. This landlocked country with only 20 kilometers of coastline of Adriatic Sea borders with Croatia on north, west, and south, Serbia to the east, and Montenegro to the southeast. The civil war in the 1990’s devastated the landscape of this country and the previous flourishing economy (Hoare 2007). With the signing of the peace treaty billions were pledged to rebuild and restart the economy of this tiny European country.
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