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CRKVENAC: LATEST BOND ISSUANCE CROATIA'S BIGGEST SUCCESS SO FAR

ZAGREB, Jan 28 (Hina) - Croatian Finance Minister Mato Crkvenac said on Monday evening the latest issuance of Croatian euro-bonds worth 500 million euros was an excellent result and so far the biggest success of Croatia's economic policy on the international market. Croatia on Monday placed EUR500 million worth of government bonds on the European financial market for a period of seven years and with a 6.25-percent annual interest rate, Crkvenac said at a news conference upon his return to Zagreb from London. The interest among foreigners in investing in the new bonds was very high, with two billion euros having been offered. The new bonds will finance the settlement of liabilities under bonds issued in 1997. Crkvenac believes that Croatia's credit rating will be even better in the foreseeable future. He says the issuance will provide Croatian companies, counties and towns with a
ZAGREB, Jan 28 (Hina) - Croatian Finance Minister Mato Crkvenac said on Monday evening the latest issuance of Croatian euro-bonds worth 500 million euros was an excellent result and so far the biggest success of Croatia's economic policy on the international market. Croatia on Monday placed EUR500 million worth of government bonds on the European financial market for a period of seven years and with a 6.25-percent annual interest rate, Crkvenac said at a news conference upon his return to Zagreb from London. The interest among foreigners in investing in the new bonds was very high, with two billion euros having been offered. The new bonds will finance the settlement of liabilities under bonds issued in 1997. Crkvenac believes that Croatia's credit rating will be even better in the foreseeable future. He says the issuance will provide Croatian companies, counties and towns with access to sound and favourable foreign capital and enable them to seek loans in the form of corporative and municipal bonds. The finance minister is particularly satisfied that the new issuance, besides the usual investors in Croatia, like Germany and Great Britain, has attracted new ones, like Greece, Luxembourg, and Spain. Asked about possible new loans on the foreign market this year, Crkvenac said the latest issuance wrapped up the largest part of this year's activities regarding state financing. The issuance of so-called samurai bonds, worth around 200 million euros, on the Japanese market is expected in mid-2002 and there are plans to draw USD100 million from the World Bank. Crkvenac was at the helm of a delegation which this week presented the domestic economy in Madrid, Milan, Copenhagen, Rotterdam, Amsterdam, Munich, Frankfurt, and London. Asked about inquiries by potential investors, Deputy Minister Damir Kustrak said there were no political questions or those about cooperation with the International Monetary Fund. The issuance was arranged by Credit Suisse First Boston and Deutsche Bank. (hina) rml

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