Sarajevo - Bosnian Muslim politician and diplomat was named the new prime minister of the Federation of Bosnia-Herzegovina on Thursday, a month after his predecessor stepped down amid corruption allegations.

Mujezinovic previously served as a banking advisor, governor of the Sarajevo canton and Bosnian ambassador at the Organization for Security and Cooperation in Europe.

Bosnia today consists of two largely autonomous parts established in 1995 to end a civil war. The federation is mostly inhabited by Muslims and Croats, while the other half is the Bosnian Serb Republic.

Mujezinovic takes over as mistrust between ethnic groups keeps central state institutions in a political and diplomatic stalemate.

Among other moves, the federation this week backtracked on commitments it accepted in talks with the International Monetary Fund, putting a three-year 1.2-billion-euro
(1.6-billion-dollar) credit at risk.(dpa)