VUKOVAR: MINISTRY, TOWN SIGN LOAN CONTRACT FOR BUSINESSMEN

VUKOVAR, Jan 23 (Hina) - The Ministry of Crafts and Small and Medium Businesses on Wednesday signed a 20-million-kuna contract with the town of Vukovar on business cooperation within the programme "Poduzetnik" (Entrepreneur). The ministry and the Zagrebacka Bank have agreed on special loan conditions for Vukovar, which suffered extensive war damage and is an area of special state concern. Under the contract, the ministry will ensure one million kuna, and the bank will multiply the amount by 20 (the multiplying factor in other contracts is 10). Instead of paying the deposit, the town Vukovar will be obliged to cover 2% of loan interest for projects whose purpose is the creation of new jobs. Loan interest for Vukovar businessmen employing new workers will be 5.5%. Minister Zeljko Pecek announced the ministry would continue to attach importance to Vukovar in its future activities as well. Preparations are underway for the opening of a centre for small businesses and the ministry and town authorities will participate in the construction of a new trade centre in downtown Vukovar. Vukovar businessmen will not have to pay trade licences and the ministry will provide assistance to businesses which have a long tradition in the Vukovar area, and businessmen employing trainees. Contracts worth 92 million kuna have been signed in Vukovar-Srijem County so far within this programme, including the contract signed with the town of Vukovar. So far the ministry has secured 1.4 billion kuna of favourable loans for Croatian businessmen within this programme. (hina) np sb