Sarajevo - Mustafa Mujezinovic from the largest Muslim Party of Democratic Action (SDA) was named Thursday as the new Prime Minister of Muslim-Croat Federation of Bosnia-Herzegovina, local media reports said.

Mujezinovic was elected after marathon talks of the federation's highest ranking officials. He told journalists in Sarajevo that his priority would be economic development and fulfilment of obligations to the International Monetary Fund.

The Federation's parliament is expected to confirm his appointment soon. Former premier Nedzad Brankovic stepped down in May amid tension with other members in the country's tripartite leadership.

Brankovic resigned after Sulejman Tihic, a member of a tripartite presidency, was re-elected as the head of SDA. Tihic demanded his resignation after a Sarajevo court indicted him for abuse of power.

Bosnia is made up of two largely autonomous parts - the Muslim- Croat Federation and the Serb Republic.

The IMF and Bosnia agreed on a 1.2 billion euro (1.6 billion dollars) standby credit, and reduced spending was among the key conditions. (dpa)