According to Minister Suker, by granting PAL 1 to Croatia, the World Bank has confirmed that Croatia has implemented the required reforms in the fields of privatisation, land registers, public administration, government subsidies, agriculture, health, Croatian Railways, etc.
The government reforms, which are supported by PAL 1, are aimed at strengthening Croatia's economic growth by reducing the size of the public sector and by increasing its efficiency and improving the investment climate, in conditions of macroeconomic stability.
The agreement signed today refers to the first of three PALs and the funds will be drawn in a single instalment by the end of this year, namely after its ratification by the Croatian Parliament. The grace period is 10 years. The interest rate, amounting to about 2.5 percent, will be paid twice a year, while the capital amount is to be paid off in one instalment on 15 September 2015.
Minister Suker said negotiations on PAL 2 had already started and agreements on the next two loans would be signed upon the completion of the planned reforms.