The loan for the reform of the Croatian social welfare system should be realised within four years. The loan is granted to the period of 15 years with a five-year grace period with a 2.64 percent interest rate, Suker said.
He added this was the 31st loan the World Bank had granted to Croatia. The country's debt with that international financial institution now amounts to EUR1.2 billion, he said.
The World Bank regional director for Croatia, Bulgaria and Romania, Anand Seth said that changes in the social policy should lead to a 15 percent reduction of the institutionalised accommodation of people on welfare and the re-direction of the funds for to the assistance at home.
Health and Social Welfare Minister Neven Ljubicic said that the funds would be invested into improving the services in social welfare centres - prevention programmes, new services and the programmes for the reintegration of the beneficiaries into the society. A total of 13 new social welfare centres will be build and another 13 would be renovated, while sanitary conditions in 55 centres would be improved, Ljubicic said.
Present at the signing was Swedish Ambassador to Croatia Sture Thoelin whose country donated two million dollars for this project.