FOREIGN BANKS EXPRESS KEEN INTEREST IN SYNDICATED LOAN FOR HBOR

( Editorial: --> 6401 ) ZAGREB, August 27 (Hina)- The Croatian Bank for Reconstruction and Development (HBOR) will be able to draw 55 million $ in foreign loans, 18 million $ more than it had originally aimed for. The money will be used by HBOR for the repair of hotels and tourist complexes. The Government decided to raise the borrowing thanks to a keen interest of international financial quarters, whose offer exceeded the Government's request by 100 per cent. The keen interest of foreign banks for participation in the syndicated loan confirmed yet another time the reputation of Croatia and the HBOR in the international market, the Government's communications office reports. Along the agreement on the syndicated loan, the Government also confirmed drafts of two loan agreements between HBOR and the Frankfurt based bank Kreditanstalt fur Wiederaufbau (KfW) (Germany's reconstruction bank). One agreement will secure for HBOR 17 million $ for development of small and medium scale private enterprises. The loan must be paid over seven years, including a grace period of three years. The other agreement is for a 28 million $ loan for the implementation of the Programme for Financing of Reconstruction and Development of Communal Infrastructure. The term for that loan is 15 years, including a grace period of five years. (Hina) mr 271957 MET aug 98