CROATIA SIGNS LOAN AGREEMENT WITH EUROPEAN INVESTMENT BANK

ZAGREB, July 30 (Hina) - Croatia signed a loan agreement with the European Investment Bank on Wednesday for the reconstruction of the utility infrastructure in areas ravaged by the 1990s war. The agreement, worth 50 million euros, was signed in Zagreb by Croatian Finance Minister Mato Crkvenac and the bank's Vice- President, Ewaeld Novotny. The loan will be used to finance a project for the reconstruction of utilities in war-ravaged areas worth 100 million euros. The rest of the funds will be secured from the national budget. Speaking after the signing ceremony, Novotny said that the European Investment Bank had so far invested about 400 million euros in Croatia. Last year it invested about 130 million euros, and this year overall investments are expected to reach about 200 million. Crkvenac said that Croatia had earmarked a lot of funds for the reconstruction of housing destroyed by war, mostly from the national budget. He added that 130,000 housing units had been rebuilt, which cost more than 13.7 billion kuna (approx. 1.8 billion euros). Crkvenac said that the signing of the agreement opened up a possibility for investment in the economic development of those areas. (hina) vm sb