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CROATIA, WORLD BANK TALKING PROGRAMMATIC ADJUSTMENT LOAN

ZAGREB, May 16 (Hina) - The World Bank and the Croatian government are holding talks about a Programmatic Adjustment Loan (PAL), a new programme whereby the world body is backing state and public sector reforms, the government said on Friday.
ZAGREB, May 16 (Hina) - The World Bank and the Croatian government are holding talks about a Programmatic Adjustment Loan (PAL), a new programme whereby the world body is backing state and public sector reforms, the government said on Friday. #L# PAL constitutes the World Bank's support to reforms in health, education, justice, and state administration. Its purpose is to step up their efficiency and adaptation to European Union standards. Sources close to the government have said plans envisage defining PAL within the next two months so that an agreement may be signed in September or October. The amount of money Croatia would get through PAL is not known at present. The programme would be implemented over a four- to five- year period. The government is working on several bills, such as amendments to laws on labour, bankruptcy, and companies, which are required to draw the second instalment of the Structural Adjustment Loan. This US$102 million instalment should have been drawn in early April. It was postponed to August 1 due to Croatia's failure to adopt all structural laws envisaged. (hina) ha sb

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