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GOVT ADOPTS BILL ON RECONSTRUCTION AND DEVELOPMENT OF VUKOVAR

VUKOVAR VUKOVAR, May 29 (Hina) - On the occasion of Statehood Day, the Croatian Government for the first time held a session in the eastern town of Vukovar on Monday. Prime Minister Ivica Racan said that by holding a session in Vukovar the Government wanted to initiate reconstruction and return processes and express gratitude to the hero-town for the sacrifices it had made for Croatia's freedom and independence.
VUKOVAR, May 29 (Hina) - On the occasion of Statehood Day, the Croatian Government for the first time held a session in the eastern town of Vukovar on Monday. Prime Minister Ivica Racan said that by holding a session in Vukovar the Government wanted to initiate reconstruction and return processes and express gratitude to the hero-town for the sacrifices it had made for Croatia's freedom and independence. #L# The Government unanimously adopted a bill on the reconstruction and development of Vukovar and a bill on stimulating investments. It also decided to sell one of the two state-owned 'challenger' planes and use that money for the reconstruction of Vukovar. Members of the Government, as well as Vukovar-Srijem County Prefect Rudolf Koenig and Vukovar Mayor Vladimir Stengl, who also attended the session, paid tribute to all Homeland War victims with a minute of silence. Presenting the bill on the reconstruction and development of Vukovar, First Deputy Prime Minister Goran Granic said its purpose was to, with a set of measures, initiate the recovery of Vukovar's war-ravaged economy and secure funds for that purpose. The bill is aimed at accelerating reconstruction as well as at the creation of new jobs, development of small and medium-sized entrepreneurship, the return of Vukovar residents and the arrival of all those wishing live and develop their businesses in Vukovar. The bill on the reconstruction and development of Vukovar was adopted unanimously as were some amendments. The Government also adopted a bill on investment stimulation, which, according to Deputy Prime Minister Slavko Linic, is aimed at stimulating domestic and foreign investors to invest into Croatia. The Government suggested a set of incentives in that regard. According to Finance Minister Mato Crkvenac, the bill on stimulating investments will "equalise Croatia with other countries in the region or even make it more attractive to foreign investors." The Government today also adopted a decision granting its approval for the Croatian Power Industry, Croatian Health Insurance Fund, and the Croatian Pension Insurance Fund to postpone the collection of some mature debts for five years, with a grace period of three years, and a discount rate by the Croatian National Bank (HNB) for the Vukovar-based companies Borovo, VUPIK, Velepromet and Vucedol, amounting to 51 million kuna. Prime Minister Racan promised the Government would at its next session consider Vukovar Mayor Vladimir Stengl's proposal that the same postponement be granted to the Vukovar Water Supply and 'Vuteks' company. Also adopted was a proposal on postponing the payment of mature and outstanding debts and debt rescheduling for Borovo-Obuca d.d. Donji Miholjac and VUPIK. The Government decided to sell the state-owned 'challenger CL-601' plane and Racan suggested that the money from the sale be used for the organised and intensive removal of rubble in Vukovar and reconstruction. It was decided that the other plane, a 'challenger CL-604', be rented when it is not used by the Presidents of the Republic, Parliament and the Government. Racan supported the idea on building an industrial zone in Vukovar and suggested an international project on reconstruction in the town. "I believe the Government's efforts will be recognised by the Croatian public as its contribution in paying the national debt to Vukovar," Racan said closing the session. (hina) rml

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