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HBOR AND 2 FOREIGN BANKS SIGN CONTRACTS ON SHIPBUILDING INDUSTRY

ZAGREB, Nov 30 (Hina) - The financial phase in the technological reconstruction of Croatian shipyards was completed on Tuesday when the Croatian Bank for the Reconstruction and Development (HBOR) signed two contracts with the Paris-based Credit Agricole Indosuez and the Milan-based Banco Ambrosiano Veneto. The value of contracts totals 8.45 million euro. Of this value, 7.18 million euro (85 percent) will refer to a tied loan for purchasing equipment from Italian suppliers. The time of repayment is seven years with the interest rate of euribor increased by 0.6 percent. The rest of 1.26 million euro will be spent as a financial loan with the repayment in two years and the interest rate of euribor increased by 2.5 percent. The deals were signed by a manager for eastern European countries, Elisabeth Martin and the head of the International Sector, Armelle Salpin, on beh
ZAGREB, Nov 30 (Hina) - The financial phase in the technological reconstruction of Croatian shipyards was completed on Tuesday when the Croatian Bank for the Reconstruction and Development (HBOR) signed two contracts with the Paris-based Credit Agricole Indosuez and the Milan-based Banco Ambrosiano Veneto. The value of contracts totals 8.45 million euro. Of this value, 7.18 million euro (85 percent) will refer to a tied loan for purchasing equipment from Italian suppliers. The time of repayment is seven years with the interest rate of euribor increased by 0.6 percent. The rest of 1.26 million euro will be spent as a financial loan with the repayment in two years and the interest rate of euribor increased by 2.5 percent. The deals were signed by a manager for eastern European countries, Elisabeth Martin and the head of the International Sector, Armelle Salpin, on behalf of foreign creditors, and by Anton Kovacev, the HBOR Management's President, and Marija Kolaric, a member of the management, on behalf of this Croatian bank. Kovacev recalled that the HBOR had commenced its programme for incentives to exports with the assistance to the Croatian shipbuilding industry. The Government has given guarantees, valued 7.5 billion kuna (approximately one billion euro), through different forms, in order to help continue production in this sector and help its shipbuilding industry be more competitive on the world market. The implementation of the programme of the technological reconstruction of Croatia shipyards, valued 60 million US dollars, began in July this year when an agreement was signed with the German Bank for Reconstruction and Development (KfW). This value of that contract was 50 million euro, Kovacev added. The receiver of loans is the HBOR, the Government gives collateral, and shipyards repay loans to the HBOR. New equipment should be installed in four Croatian shipyards - Brodotrogir, "3. Maj", Uljanik and Brodosplit. Croatia's shipbuilding industry published an international bid for offers to suppliers of adequate equipment. After the bid, the above mentioned two banks from Italy and France were selected. (hina) ms

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