LOWER HOUSE DISCUSSES INCENTIVES FOR DEVELOPMENT OF AREAS OF SPECIAL STATE CONCERN

ZAGREB, Jan 28 (Hina) - The Croatian National Parliament's House of Representatives continued its session on Thursday by a discussion on amendments to the law on the areas of special state concern. The amendments should facilitate the granting of loans for the development of those areas. The Croatian areas, which used to be under the Serb occupation and which are now of the special concern, are faced with the problem of a considerably higher unemployment rate than in other parts of the country. Furthermore, only 10 to 15 percent of the arable land has been cultivated. Considering such problems, a deputy of the ruling Croatian Democratic Union (HDZ), Drago Krpina, proposed an amendment to the law on those areas, which will enable businessmen, craftsmen and farmers to be granted loans from the Croatian Bank for Reconstruction and Development (HBOR), in a simpler way. Krpina suggested that the State Commodity Stockpiles should buy up products from the areas before taking produce from other parts of the country. Such moves would create preconditions for a speedier progress of the economy and agriculture in those areas, Krpina explained. The law on the areas of the special state concern was passed in May 1996. Eight laws had to be brought into accordance with it then. The HDZ deputy proposed that another two laws be also brought into accordance with the law on the areas of the special state concern - the law on the HBOR and the law on the State Commodity Stockpiles. The Croatian Government endorsed the proposed amendments and announced greater changes of the law on the areas of the special state concern. (hina) jn ms