CRO. GOVERNMENT, WORLD BANK WRAP UP SUCCESSFUL NEGOTIATIONS

ZAGREB, April 24 (Hina) - The World Bank on Tuesday wrapped up negotiations with the Croatian government on a $5 million loan to finance bankruptcies and a reform of the judiciary, the bank's director for Croatia said in Zagreb after talks with Prime Minister Ivica Racan. The loan will help bring Croatia's judicial system up to date, step up bankruptcy proceedings, improve the work of bankruptcy trustees, and enhance judicial administration throughout Croatia, the World Bank's Andrew Vorkink told reporters. He added the Croatian government had made a considerable step forward in relation to the Enterprise and Financial Sector Adjustment Loan over the past six months. Preparations for a $200 million Structural Adjustment Loan will be completed by June, Vorkink announced. He said the loan supported a very ambitious and strong structural adjustment programme for the Croatian government, bound to revive the national economy in the long run and give it added impetus. Vorkink said the World Bank was happy with the progress achieved in Croatia. Speaking about the bank's support to reforms in Croatia, Prime Minister Racan said he expected a programme of investing in small businesses amounting to $200 million to be realised in the coming months. He also expects World Bank assistance in the restructuring of major companies, probably some $80 million. As of September, Vorkink will be the bank's regional representative for Croatia, when it will open an office in Zagreb, said Racan. (hina) ha sb