SLAVONSKA BANKA AND EBRD SIGN CONTRACT ON 20-MILLION-EURO LOAN

Osijek, Nov 22 (Hina) - Slavonska Banka d.d. Osijek and the European Bank for Reconstruction and Development (EBRD), on Wednesday signed a contract on a long-term loan worth 20 million euro (150 million kuna). Some means from the loan will be used for the rescheduling of short- term debts during the financial rehabilitation of the Slavonska Bank's clients, a part of the loan will be used for consumer instalment loans and the largest portion of it will be given for good economic programmes. The loan has the longest grace period of seven years and the interest rate of 7.20 percent, which will be determined according to the credit rating of forthcoming users. The money has already been ensured and firms are being checked now, said the Slavonska Banka's Management Chairman Ivo Mihaljevic, who signed the contract on behalf of this Croatian financial institution. Rogers LeBaron, who signed the document on behalf of the EBRD, said the conclusion of this contract was the result of the long-term cooperation with Slavonska. He assessed that the Croatian bank was on the good path of being transformed from a state-run bank into a modern bank. (hina) ms