With the establishment of the single institution, the Croatian Securities Exchange Commission, the Agency for the Supervision of Pension Funds and Insurance Companies (Hagena) and the Directorate for the Supervision of Insurance Companies will cease existing.
The new agency, whose main objective is to ensure and promote the stability and soundness of the financial sector, will take over the control of the non-banking sector, the assets of which exceed 40 billion kuna, Finance Minister Ivan Suker said at the government's session in Zagreb on Thursday.
The supervision of banks will remain within the jurisdiction of the Croatian National Bank.
The government also okayed the launching of a procedure for the conclusion of a memorandum on receiving non-repayable financial assistance from the European Union's ISPA programme for the reconstruction of the Vinkovci-Tovarnik railway line to the border with Serbia and for the water supply system in the city of Karlovac.
The reconstruction of the railway line will be financed with a non-refundable 28.9 million euros, while the Karlovac water supply network requires 22.5 million euros from that fund. The Croatian government will ensure an additional 47 million euros for the former and 13.5 million euros for the latter project.
The government informed that Denmark was willing to give Croatia two million euros as pre-accession assistance for the reform of the state administration.
The Netherlands is going to donate an engine ferry for the re-establishment of service by ferry between the Croatian port of Vukovar on the Danube and the port of Vajska in Serbia-Montenegro.
The agreement on the matter will be signed by the three countries in Vukovar in ten days' time.