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GOVERNMENT ISSUES STATEMENT AFTER CLOSED SESSION

ZAGREB, May 23 (Hina) - The Croatian government on Thursday adopted a regular report on the implementation of the Stabilisation and Association Agreement between Croatia and the European Union and its member-states in April.
ZAGREB, May 23 (Hina) - The Croatian government on Thursday adopted a regular report on the implementation of the Stabilisation and Association Agreement between Croatia and the European Union and its member-states in April. #L# In order to facilitate and accelerate the border procedure in passenger traffic during the tourist season, the government decided to allow Bosnian citizens to enter Croatia with ID cards between June 1 and September 30, 2002, reads a statement issued after the closed-door part of today's government session. The government put up collateral for the Croatian Reconstruction and Development Bank for a US$2.2 million loan, to be used by the "Uljanik plovidba" shipping company from Pula, for Splitska Banka for a US$7.5 million loan, to be used by the "Mediteranska plovidba" shipping company from Korcula, and for the Commercial Bank Zagreb - Dubrovnik Office for a US$10 million loan, to be used by the "Atlantska plovidba" shipping company. The government has given the oil company INA consent to seek a US$200 million syndicated loan abroad. The government has chosen the Citigate Dawe Rogerson agency from London as an international advisor on public relations in the process of INA's privatisation. The Hauska&Partner agency was selected as a domestic advisor. Public relations costs will be covered by INA. The government has also given the Rijeka Port consent to extend its free zone. The Agency for Legal Matters and Mediation in Real Estate Trade (APN) has been entrusted to pay part of the tax on real estate trade during the sale of flats from the Law on Socially-Stimulated Housebuilding. APN will cover the part of the tax base which refers to the value of the flat, that is, the real estate whose construction was paid by the state, including VAT. The tax will be covered with funds secured for the implementation of the Law. The government has also initiated proceedings for the signing of agreements on trade and economic cooperation with Sri Lanka and the Lebanon. It also initiated the signing of an agreement on military and technical cooperation with the Ukrainian Cabinet of Ministers. The government has entrusted the Allen & Overy law firm from London and the Hanzekovic & Radakovic law firm to represent Croatia, with the support and participation of the State Prosecution, in the process of arbitration between Astaldi and Croatia, which is being conducted at the International Arbitral Centre of the Austrian Economic Chamber in Vienna, the statement read. (hina) rml

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