CROATIA, USAID SIGN MEMORANDUM OF UNDERSTANDING ON REFUGEE RETURN

ZAGREB, April 12 (Hina) - Croatian Reconstruction Minister Radimir Cacic, the head of the U.S. Agency for International Development (USAID), Pamela Baldwin, and US Ambassador Lawrence Rossin on Friday signed a memorandum of understanding, initiating a programme of assistance to the return and social integration of refugees. #L# The implementation of the programme will start with a five-million- dollar pilot project, to include the reconstruction of one hundred severely damaged houses, Cacic said, adding that the users of the programme would be given vouchers and reconstruct their houses on their own. The USAID will provide housing accommodation for another 100 families, which will later be able to buy those houses with loans. The USAID will provide guarantees for the loans and the Croatian government will give a 50-percent discount, Cacic said. Should there be enough interest and conditions for cooperation are provided, once the pilot project is completed, the USAID will resume providing loan guarantees in the amount of 35 million dollars, Cacic said. The USAID will provide guarantees worth USD35 million to banks which will grant loans for the construction of houses. (hina) rml