CRO GOVERNMENT ON LOAN FOR DEVELOPMENT OF PRIVATE SECTOR

ZAGREB, March 18 (Hina) - On Thursday, the Croatian Government decided to initiate a procedure for concluding an agreement on the loan for a project of technical assistance in connection with institutional and legislative changes with the aim of developing the private sector. The deal is to be made between Croatia and the European Bank for Development and Reconstruction (IBRD). The loan values 7.3 million American dollars. This also covered the initial fee of one percent. The loan with five-year grace period should be paid for 15 years. The interest rate is the six-month LIBOR increased by a 0.39 percent margin in a year. As of this year until 2003 Croatia should earmark a total of 11.5 million kuna (about 1.7 million dollars) from the state budget in order to finance partly the project. The project includes the financing of the market competition regulatory agency, the commission for securities and the central depository agency as well as the financing of elaboration of a study for improvement of the land registry system via the state geodetic office, the introduction of a system for monitoring consumer prices in the Croatian Statistical Office, as well as the support for the state agency for the insurance of saving deposits and the rehabilitation of banks during the privatisation of the three state-owned banks and so on. (hina) ms