WASHINGTON/ZAGREB, Dec 5 (Hina) - The World Bank's executive board granted Croatia on Tuesday a US$202 million structural adaptation loan aimed at supporting the government's programme of structural and institutional reforms, the
World Bank said in a statement. The loan complements a macroeconomic programme supported by the International Monetary Fund's stand-by arrangement. The loan will be paid out in two instalments: the first, of US$102 million, when the loan goes into force, and the second about a year later, when Croatia has met the payment conditions. The time of repayment is 15 years, with a five-year grace period. The main objectives of the loan are increasing the flexibility and efficiency of the economy in view of opening jobs and boosting export, strengthening market institutions and the fiscal discipline, and improving the framework of inducements for a more competitive economy wh
WASHINGTON/ZAGREB, Dec 5 (Hina) - The World Bank's executive board
granted Croatia on Tuesday a US$202 million structural adaptation
loan aimed at supporting the government's programme of structural
and institutional reforms, the World Bank said in a statement.
The loan complements a macroeconomic programme supported by the
International Monetary Fund's stand-by arrangement.
The loan will be paid out in two instalments: the first, of US$102
million, when the loan goes into force, and the second about a year
later, when Croatia has met the payment conditions.
The time of repayment is 15 years, with a five-year grace period.
The main objectives of the loan are increasing the flexibility and
efficiency of the economy in view of opening jobs and boosting
export, strengthening market institutions and the fiscal
discipline, and improving the framework of inducements for a more
competitive economy which would create a more favourable climate
for the development of small and medium-sized companies and reduce
the grey economy.
The programme of structural and institutional reforms assisted by
the loan covers five areas: improving coordination and management
in the passing of the economic policy, increasing the fiscal
discipline, strengthening market institutions and economy
competitiveness, increasing flexibility on the labour market, and
stepping up social protection.
A successful implementation of said reforms would lead Croatia to
sustainable development and strengthen its macroeconomic
stability, thus facilitating and accelerating integration into
European structures, according to Andrew N. Vorkink, the World Bank
director for Southern and Central Europe.
Since Croatia's admission in 1993, the Bank has financed 19
projects through loans worth approximately one billion U.S.
dollars, and deeds of donation exceeding US$17 million. The Bank is
also offering technical assistance and counselling.
The loan agreement will be signed in Zagreb today by Croatian
Finance Minister Mato Crkvenac and Vorkink.
(hina) ha