World Wire
BOSNIA AGREES ON CURRENCY BOARD</br></br>The U.S. said leaders of Bosnia-Herzegovina agreed on basic terms of a currency board -- essentially a central bank -- including creation of a "fully convertible" Bosnian marka. The U.S. brokered the deal with Bosnia's collective presidency to foster stability in trade and business transactions. The marka will be convertible at a 1-to-1 rate with the German mark, and will be backed by multilateral lending agencies and donor countries. Under a 1995 peace accord, the currency board is to operate for six years, headed by a French national.</br></br>EU NATIONS FAULTED FOR TRICKS . . .</br></br>The precursor to the European Central Bank scolded European Union governments for using trick accounting methods to cut budget deficits. European Monetary Institute President Alexandre Lamfalussy said such moves will be scrutinized in 1998 for EU countries to qualify for monetary union on Jan. 1, 1999. But he also said economic unification is likely to start on time, distancing himself from Germany's insistence on strict compliance.</br></br>. . . AND GERMANY MAY FALL SHORT