CONCLUSIONS OF ZAGREB MEETING OF S-E EUROPEAN DEVELOPMENT BANKS

ZAGREB, June 12 (Hina) - Development prospects of some south-east European countries are poor without foreign investments and exports among countries in the region and with other countries, Croatian Reconstruction and Development Bank (HBOR) director Anton Kovacev said on Tuesday speaking about the conclusions of a meeting of south-east European development banks for the financing of export and insurance against commercial and political risks. The meeting, organised at Zagreb's Sheraton hotel by the HBOR, the Organisation for Economic Cooperation and Development (OECD) and the Stability Pact for Southeastern Europe, gathered more than 100 participants, including representatives of development banks and international financial institutions, diplomats, businessmen, bankers, attorneys and insurers. An OECD director, Declan Murphy, and the director of the second Stability Pact's Working Table, Didier Fau, also commented on the most important conclusions of this morning's part of the meeting as well as on a draft document to be adopted this afternoon. Murphy believes development should be stimulated from within the region and that one should not wait for international financial institutions to do it. Croatia sets a good example because it has taken over the leading role in the region in several areas - banking, bilateral investment agreements and investment stimulation. This is a good signal that investments and trade in the region can and should be developed, he said. Fau believes that along with implementing its priorities and drawing closer to the European Union through a Stabilisation and Association Agreement, Croatia also has a positive role in the building of good neighbourly relations in the region. The Stability Pact will continue supporting Croatia and regional cooperation initiatives as well as the strengthening of the institutions of some countries in the region, Fau said. The meeting is expected to adopt a final document on conclusions this afternoon. The document's draft emphasises, along with the importance of foreign investments for the region's economic revival, the need for concluding bilateral agreements on cooperation in the banking sector and the development of insurance, re-insurance and joint insurance in cooperation with other agencies for export insurance. The document also stresses that potential investors believe political risks connected with production investments in the region are disproportionally high and not balanced by adequate risk insurance instruments and points to the need for the further development of the existing operative programmes of national financial institutions. (hina) sb rml