ASSOCIATION OF SMALL BUSINESSES WELCOMES INVESTMENT INCENTIVES

ZAGREB, Sept 6 (Hina) - The Association of Small and Medium Businesses, which is part of the Croatian Employers' Association, has welcomed the investment incentives for small and medium entrepreneurship announced by Finance Minister Mato Crkvenac on Wednesday. The Croatian Reconstruction and Development Bank (HBOR) is launching a programme of granting loans to small and medium businesses in a new way, with invested funds being replaced by recapitalisation in exchange for a share in the companies' capital stock. The programme is aimed at increasing production and employment, the chairman of the HBOR Supervisory Board and Finance Minister Mato Crkvenac said yesterday. The Association of Small and Medium Businesses says the announced measures are so far the most serious attempt to invest into small and medium businesses, which could yield results soon. However, the association also warns that the bank does not have the adequate personnel infrastructure to systematically follow the development of the announced investments and that many previous cooperation attempts were hampered by poor communication between the HBOR and the private sector. The association therefore fears the results of the announced measures could be below expectations. (hina) rml