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HBOR ORGANISES CONFERENCE ON ENCOURAGEMENT OF EXPORT

DUBROVNIK, Sept 19 (Hina) - The Croatian Bank for Reconstruction and Development (HBOR) used all funds to subsidise exports by the beginning of August which were planned to be used for this purpose this year. The sum spent so far as export subsidy is 260 million kuna, the president of the HBOR Board of Directors, Anton Kovacev, said at an international conference on export encouragement measures and policies, which the said bank organised in Dubrovnik.
DUBROVNIK, Sept 19 (Hina) - The Croatian Bank for Reconstruction and Development (HBOR) used all funds to subsidise exports by the beginning of August which were planned to be used for this purpose this year. The sum spent so far as export subsidy is 260 million kuna, the president of the HBOR Board of Directors, Anton Kovacev, said at an international conference on export encouragement measures and policies, which the said bank organised in Dubrovnik. #L# After the state budget was revised, the HBOR was given an additional 100 million kuna for this year's export subsidy programme, but this would not be sufficient according to the interest of parties and number of those who applied. This year's funds have increased by more than twofold in comparison to the funds which in the entire 2002 the HBOR spent for subsidising interest rates of export credits, Kovacev said describing it as significant headway. This is also corroborated by figures on the sums of export credits which the HBOR is ensuring through cooperation with commercial banks. The initial plan was to secure some 2.8 billion kuna, but it is likely to rise to four billion by the end of the year, Kovacev said. The additional incentive for Croatian business people to enter foreign markets is the HBOR's latest product referring to insurance against political risks which Croatian companies operating abroad could be given for the period from three to 15 years, with the coverage of 90 percent of invested sums. Deputy Agriculture Minister Tomislav Ledic informed the conference that Croatian agriculture recorded the highest rise in export in 2002 since Croatia won independence. For instance, the rise in export of Croatian agricultural produce climbed by 50 percent in comparison to 2001. The positive trend is going on, Ledic said. However, Croatia still produces only ten types of agricultural products in sufficient amounts to cover domestic needs. As much as 80 percent of agricultural products which it produces are not in sufficient quantities and must be imported, he added. A representative of the Croatian Chamber of Economy, Biserka Paukovic, pointed to the unchanged structure of Croatian exports for years with ships, textile, timber at the top of the list of Croatian exports. She advocated some changes in this field urging possible new exporters to use the potential of newly opened markets. The HBOR conference has gathered Croatian exporters, foreign bankers and financial experts from international institutions. (hina) ms

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