Republika Srpska Constitutional Court

Opposition parties in Republika Srpska have announced legal action against the leadership of Bosnia's Serb-dominated entity for taking out a controversial loan.

They will legally challenge legality and constitutionality of this financial transaction, opposition leaders told a session of the National Assembly on Wednesday.

Despite condemnation from local and regional officials, the leadership of Bosnia's Serb-dominated entity, Republika Srpska, has moved ahead with holding a hotly disputed referendum on the authority of state and international institutions.