MINISTRY MOTIONS INTERVENTION MEASURES FOR TOURIST SEASON

ZAGREB, April 12 (Hina) - The Croatian Tourism Ministry expects the Government to support a motion of intervention measures aimed at helping hotels prepare for the upcoming tourist season in the face of dire financial straits. The salvaging measures, motioned by the Tourism Ministry, include the unblocking of hotel accounts, rescheduling loan debts, new loan opportunities and postponement of bankruptcy. Tourism Minister Pave Zupan Ruskovic on Wednesday spoke about the issue with representatives of the Croatian Hoteliers. Total damage suffered by Croatian tourism in the past several years (from war damage to that caused by the diminished number of tourists) amounted to 74 million kuna (US$9.75 million) of debts from last year. Out of the total state support this year to tourist companies (170 million kuna; US$21.25 million) remains unpaid 63.5 million kuna (US$7.94 million), which will soon be sent to hoteliers in the contitental part of the country, Ruskovic said. Envisaged are also 25 million kuna (US$3.125 million) of funds for marketing on foreign tourism markets. The Minister expects the Government to support at Thursday's session, the Ministry's suggestion on the rescheduling of loans for tourist companies to eight to ten years with a three year grace period and an eight per cent interest rate, and the Croatian Bank for reconstruction and Development loans should be rescheduled in the same way. By the end of the month the Bank should grant new loans for tourist companies of 50 million euro from foreign loans and 30 million kuna from own funds, which totals about DM100 million, the Minister said and was supported by the hoteliers. (hina) lml jn