"Bosnia and Herzegovina is one of Croatia's most important partners and our closest neighbour with which we share a lot of good," Josipovic told a joint news conference with Bosnian Presidency chairman Nebojsa Radmanovic.

Josipovic said today's meeting was a continuation of positive trends and announced intensified efforts to solve all outstanding issues, primarily concerning the border, property relations, dual citizenship, and an agreement on free transit through the Croatian seaport of Ploce and the Bosnian coastal town of Neum.

The three members of Bosnia's Presidency - Radmanovic, Bakir Izetbegovic and Zeljko Komsic - began a two-day visit to Croatia by meeting Josipovic.

He announced that the Croatian-Bosnian Cooperation Council would convene as soon as the Bosnian Council of Ministers was formed, adding that the two countries would also continue to cooperate in issues pertaining to succession to the former Yugoslavia.

Josipovic said today's talks also addressed economic issues, with emphasis on trade and joint ventures in third countries, and refugee returns.

"My assessment is that today's meeting was extremely important and successful and that it is another contribution to the creation of good relations between our two countries," he said.

Radmanovic agreed that the meeting reaffirmed the good relations between Croatia and Bosnia, adding it was high time the two countries' executive authorities "show that outstanding issues can be solved," primarily on property and the border.

"Officials must show that they can indeed solve something, instead of just saying that they want to solve it," he said, adding he realised that solving problems was not easy.

Radmanovic said the meeting with Josipovic was important for the whole region "as no country can live alone."

"Bosnia and Herzegovina is looking up to Croatia on its road to the EU," which all countries of the region want to join, at a different pace, of course, he said.

Radmanovic also said that all countries in the region must cooperate in the fight against crime and corruption, adding this was, alongside peace and stability, a key issue for the entire region.

The presidency members are expected to hold talks also with Parliament Speaker Luka Bebic and Prime Minister Jadranka Kosor.

The talks are focusing on the bilateral relations, outstanding issues between the two neighbouring countries as well as on refugee returns and a fund-raising conference for this purpose.

Air pollution caused by the Bosnian oil refinery near the Croatian border and the case of war veteran Tihomir Purda, detained in Bosnia, on a warrant issued by Serbia for his arrest, are expected to be on the agenda of the talks as well.