ZAGREB, Dec 5 (Hina) - Croatia's Finance Minister Mato Crkvenac and the World Bank's director for Southern and Central Europe, Andrew Vorkink, signed a US$202 million structural adaptation loan contract in Zagreb on Wednesday.
ZAGREB, Dec 5 (Hina) - Croatia's Finance Minister Mato Crkvenac and
the World Bank's director for Southern and Central Europe, Andrew
Vorkink, signed a US$202 million structural adaptation loan
contract in Zagreb on Wednesday.#L#
The loan is aimed at supporting the government's programme of
structural and institutional reforms, and 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.
Croatia has a very ambitious development investment programme,
Prime Minister Ivica Racan said after the signing. This support on
the World Bank's part is extremely important and Croatia
appreciates it very much, he added.
Racan reminded the Bank decided earlier this week to activate,
after four years of waiting, the second, DM80 million instalment of
the EFSAL programme, intended for the adaptation of the financial
sector and companies.
Vorkink described the US$202 million loan as historic for Croatia
as it is individually the biggest loan the World Bank has granted
Croatia in the last ten years.
He emphasised the loan would help in the management of the economic
programme, passing the state budget, increasing the
competitiveness of the domestic economy, lead to fewer permits
required for opening new companies, help the flexibility of the
labour market, foreign investments, and the social protection
system.
The World Bank's activities are fully in line with the government's
priorities and represent a strong support to Croatia's turning to
development in stable conditions, higher employment and
competitiveness, stronger market conditions and the rule-of-law,
said Minister Crkvenac.
Vorkink added the Croatian government and the World Bank were
working on several other projects worth US$400 million. These
include projects related to the pension system, social protection,
the arrangement of land registries and cadastral books,
environmental protection on the coast, the islands and in national
parks, the Rijeka Harbour, and others.
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.
(hina) ha sb