ZAGREB/LONDON, May 5 (Hina) - In its new strategy for Croatia the
European Reconstruction and Development Bank (EBRD) has said that despite
strong GDP growth and a forging of closer ties with the European Union in
recent years, much remains to be done in Croatia.
In the strategy,
released on the EBRD web site on Wednesday, the bank concludes that Croatia
still faces structural challenges, such as restructuring and privatising
state-owned utilities and tourism-related enterprises, and acceleration of
reforms in the public administration and the judiciary.
"To address
these challenges Croatia should improve the business climate, promote
private-sector participation, further develop regional cooperation and enhance
transparency and efficiency," the bank said.
The EBRD, which has
already invested EUR1.3 billion in Croatia, intends to continue to support the
country and will focus in particular on several sectors. In the infrastructure
and environment sector the bank will work with large and medium-sized
municipalities to develop infrastructure projects for prospective EU
co-financing. In addition, the bank will continue to reach small municipalities
through local banks. The EBRD will also support national infrastructure
projects, particularly in the transport sector.
In the financial
sector the Bank will pursue small and medium-sized enterprises and micro
finance. While expansion in credit has been focused on households, small,
medium-sized and micro enterprises in rural areas still lack access to finance,
the Bank said and added it would also consider equity participation in the
privatisation of the state-owned insurance company.
With respect to
privatisation and the enterprise sector, the Bank's activities will focus on
supporting further privatisation and restructuring of key enterprises. The Bank
will focus on financing and restructuring hotels and related enterprises
underpinning further development of tourism - a sector seen as essential to
Croatia's future, reads the EBRD strategy.
ZAGREB/LONDON, May 5 (Hina) - In its new strategy for Croatia theEuropean Reconstruction and Development Bank (EBRD) has said thatdespite strong GDP growth and a forging of closer ties with theEuropean Union in recent years, much
remains to be done in Croatia.Inits new strategy for Croatia the European Reconstruction andDevelopment Bank (EBRD) has said that despite strong GDP growth and aforging of closer ties with the European Union in recent years, muchremains to be done in Croatia. In the strategy, released on the EBRDweb site on Wednesday, the bank concludes that Croatia still facesstructural challenges, such as restructuring and privatisingstate-owned utilities and tourism-related enterprises, andacceleration of reforms in the public administration and thejudiciary. "To address these challenges Croatia should improve thebusiness climate, promote private-sector participation, furtherdevelop regional cooperation and enhance