ZAGREB, Oct 27 (Hina) - Croatian Prime Minister Ivica Racan and the World Bank director for South and Central Europe, Andrew Vorkink, signed in Zagreb on Friday a US$400,000-worth deed of donation for the Croatian Government intended
for the improvement of public and business communication. Vorkink and Finance Minister Mato Crkvenac today signed an agreement on a World Bank EUR14.8 million loan for the improvement of trade and transport in Croatia.
ZAGREB, Oct 27 (Hina) - Croatian Prime Minister Ivica Racan and the
World Bank director for South and Central Europe, Andrew Vorkink,
signed in Zagreb on Friday a US$400,000-worth deed of donation for
the Croatian Government intended for the improvement of public and
business communication.
Vorkink and Finance Minister Mato Crkvenac today signed an
agreement on a World Bank EUR14.8 million loan for the improvement
of trade and transport in Croatia. #L#
Croatia's economic recovery is visible, its economic growth is
higher than forecast, interest rates are lower, the tourist season
has been successful and the increase in saving shows that
confidence in banks is being restored, Vorkink said, adding he was
optimistic regarding the country's economic development.
The signing of the deed of donation and the loan agreement means
successful continuation of the already good cooperation and
support to Croatia's programme of changes and reforms, Prime
Minister Racan said.
The US$400,000-worth donation will be used for the improvement of
the communication strategy within the government and toward the
public, including the provision of information on the necessity of
reforms.
The loan which Finance Minister Crkvenac signed with World Bank's
Vorkink has a maturity of 15 years, a grace period of five years and
is based on a six-month LIBOR interest rate on EURO (variable).
The loan is intended for the implementation of the Trade and
Transport Facilitation in Southeast Europe Project (TTFSE).
The project is the result of a drive launched by the South-East
European Cooperation Initiative (SECI) and can, according to
Finance Ministry officials, be treated as the first Stability Pact
project ready for implementation. The TTFSE in Croatia, which the
US Government will co-finance with US$1.9 million and the Croatian
Government with another six million dollars, will: support customs
reforms; speed up import and export procedures and provide
technical assistance; strengthen mechanisms of interaction and
cooperation between border control agencies; and cover the
construction and equipment of the border crossings Slavonski Brod,
Gunja, Maljevac and Samac.
All this, Vorkink said, will reduce bribery and corruption, which
are typical of all countries in transition in this part of Europe.
Croatian government and World Bank officials have also discussed
issues such as the reduction of deficits, close monitoring of the
inflation rate, proportions and shares of public services and the
public sector in the economy, additional incentives for
entrepreneurship and the creation of jobs.
The two sides have reached an agreement on a $200 million draft
Structural Adjustment Loan on which a contract could be signed in
spring 2001, Vorkink said. The loan will be used for stimulating
growth and creating new jobs, increasing competitiveness and
eliminating grey economy, as well as improving social care and
reducing unemployment.
Talks are being held also on the protection of shareholders' rights
and speeding up bankruptcy proceedings, as well as on budgetary
discipline and the labour market, Vorkink said.
Finance Minister Crkvenac said that official talks with an IMF
delegation would start this afternoon. The talks will tackle four
basic areas: the state budget, the tax reform, the health system
reform and the incomes policy.
We are interested in an agreement with the IMF, and talks are
welcome as Croatia does not necessarily need a loan because of its
high foreign currency reserves, Crkvenac said.
(hina) rml