LOAN FOR BREGANA-ZAGREB-DUBROVNIK HIGHWAY SIGNED

ZAGREB, June 24 (Hina) - The Croatian Government and eight banks on Thursday signed a contract on a loan for the construction of three sections of the future highway from the Slovene border to southern Croatia "Bregana-Zagreb-Dubrovnik." The highway is being built by the Croatian Administration for Roads and the U.S. firm Bechtel International Inc. The total amount of the loan is 303 million U.S. dollars and consists actually of two loans. On Thursday, the banks and the Government signed a 75-million loan with a four-year grace period, and the collateral for the other loan, valued 228 million, with the 14-year grace period. The loan was approved with the collateral of the American Export-Import Bank. The documents were signed by Croatian Finance Minister Borislav Skegro and representatives of eight banks from seven countries which took part in the syndicate - ABN Amro Bank N.V., Banque Nationale de Paris and Dresdner Bank Group, Chase Manhattan plc, Erste Bank, KBC Bank N.V., National Bank plc, Paribas, Privredna banka Zagreb, Societe General and Zagrebacka banka. In this situation marked by uncertainties on the international financial markets and consequences of the Kosovo crisis, the fact that the demand was 40 percent higher than the offer shows that many banks in the world place much confidence in the Croatian future, as the financing refers to long-term projects in the infrastructure, Skegro said. At the end of May, Reconstruction Minister Jure Radic and Bechtel representatives signed an annex to the framework agreement on the highway's construction. They agreed on building the three sections: Bregana-Zagreb, Zagreb-Sisak and the construction of a section through Lika "Bosiljevo-Sveti Rok". These sections should be completed by 2005. The construction of the Bregana-Zagreb-Dubrovnik highway will cost almost one billion dollars. (hina) jn ms