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Croatia and World Bank to negotiate PAL 2 in December

SINGAPORE, Sept 19 (Hina) - Negotiations between Croatia and the World Bank on the Second Programmatic Adjustment Loan (PAL 2) are likely to be held in December this year with the aim of completing all the ongoing reforms until the end of January 2007, the Croatian Ministry of Finance said in a press release on Tuesday.
SINGAPORE, Sept 19 (Hina) - Negotiations between Croatia and the World Bank on the Second Programmatic Adjustment Loan (PAL 2) are likely to be held in December this year with the aim of completing all the ongoing reforms until the end of January 2007, the Croatian Ministry of Finance said in a press release on Tuesday.

The ministry reported on meetings Finance Minister Ivan Suker and other Croatian officials had with representatives of the World Bank during a 19-20 September annual meeting of the International Monetary Fund and the World Bank in Singapore.

Suker and the World Bank's Vice President for Europe and Central Asia, Shigeo Katsu, discussed plans to hold negotiations on the PAL 2 in December this year so as to complete the ongoing reforms until the end of January 2007.

The main reforms which are to be accelerated are those relating to public health, social benefits and compensation and privatisation, the press release reads.

According to the ministry, Croatia asked the World Bank for three aid loans: for modernisation of tax administration, for investment in water supply systems and water management in continental Croatia, and for the modernisation of the seaport of Rijeka.

Shigeo Katsu announced the closing of the Regional Office of the World Bank in Croatia, retaining only the Bank's department in charge of Croatia. This is usual practice in countries in which the amount and the number of loans decreases with the process of their integration with the European Union.

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