ZAGREB, Nov 10 (Hina) - The European Bank for Reconstruction and Development on Friday presented a new strategy for Croatia in view of supporting its efforts to reduce the state's role in the economy, attract private capital, and
promote constant growth, EBRD's office in Zagreb said in a statement. The new government has adopted a platform to further economic reform and integrate Croatia into the rest of Europe, and this plan will enable EBRD to reinforce its activities in Croatia, said Alain Pilloux, director of the bank's business group for Central Europe. In the past, EBRD played a significant role in Croatia's transition into market economy, adopting 33 projects through Sept. 30, including EUR571 million in direct investment and $1.7 billion from donors and co-financers. Aiming to give impetus to further economic reforms and Croatia's international integration, EBRD's new strategy is focused on su
ZAGREB, Nov 10 (Hina) - The European Bank for Reconstruction and
Development on Friday presented a new strategy for Croatia in view
of supporting its efforts to reduce the state's role in the economy,
attract private capital, and promote constant growth, EBRD's
office in Zagreb said in a statement.
The new government has adopted a platform to further economic
reform and integrate Croatia into the rest of Europe, and this plan
will enable EBRD to reinforce its activities in Croatia, said Alain
Pilloux, director of the bank's business group for Central Europe.
In the past, EBRD played a significant role in Croatia's transition
into market economy, adopting 33 projects through Sept. 30,
including EUR571 million in direct investment and $1.7 billion from
donors and co-financers.
Aiming to give impetus to further economic reforms and Croatia's
international integration, EBRD's new strategy is focused on
supporting privatisation and direct foreign investments,
encouraging the commercialisation and expansion of the
infrastructure, assisting in the development of non-banking
institutions and the consolidation of the banking sector.
EBRD will encourage the development of small and medium-sized
businesses, transborder regional integration and the expansion of
development funds.
The scope of EBRD investments will depend on improvement of the
climate favouring investing and the implementation of reforms.
The new strategy's macroeconomic evaluation of Croatia's progress
in the transition process mentions strong signals of economic
revival in 2000.
Forty-four percent more tourists vacationed in Croatia in the first
half of the year as compared to 1999. Industrial production rose by
three percent, with stronger export. A 3.5 percent growth rate
could be recorded by the end of the year. There are, however, fiscal
issues, for instance excessive public spending.
EBRD's microeconomic evaluation says Croatia's progress towards
market economy has been modest, and that Croatian economy has
lagged behind other transition economies.
EBRD says the private sector accounts for some 60 percent of gross
domestic product, which leaves lots of room for progress, and that
changes in legislation and administration have created a climate
favourable for growth in entrepreneurship.
The bank expects to sign several other projects with Croatia by the
end of the year. The EBRD management board has granted a EUR150
million loan to Croatia's biggest food-processing company,
Agrokor.
The bank would also like to pursue relations with pharmaceutical
company Pliva, earmarking EUR40.6 million for the construction of
an ultramodern research institute in Zagreb.
(hina) ha jn