BANK TO GIVE CROATIAN EXPORTERS $39 MILLION IN ASSISTANCE

( Editorial: --> 7354 ) ZAGREB, Sept 1 (Hina) - The Croatian Bank for Reconstruction and Development (HBOR) on Tuesday started its new US$39 million export assistance programme. From September 1, Croatian exporters can submit requests to join the programme at commercial banks participating with HBOR. Requests can be submitted for insuring political and commercial risks and for credits in arranging exports and exporting. HBOR's export assistance programme is financed entirely through the Croatian state budget. On Tuesday Economy Minister Nenad Porges and HBOR management board president Anton Kovacev announced at a press conference in Zagreb that the credits would be approved for exporters of consumer goods. For now services are excluded from the programme, apart from those directly related to exporting, such as freight forwarding and transportation. Under the programme exporters can receive credits from US$47,000 to US$1 million, at an interest rate of up to 7 per cent. Namely, HBOR will approve funds to commercial banks at a rate beginning at 5 per cent, while banks can add up to 2 per cent on top of this. The repayment deadline is tied to the payment for export activities, by the expiration of the deadline for bringing foreign exchange into the country at the latest. The first decision on requests for export assistance can be expected in 10 to 15 days, Porges and Kovacev said. By insuring exports from political and commercial risk, HBOR has taken on the role of a special export agency, because the insurance activities are done in the name and on account of the state. The primary aim of the programme is for HBOR to pay the exporter compensation and supplementary costs, if the exporter suffers damage following a default by a foreign buyer because of risks covered by the insurance policy. Insurance policy requests will be decided by an inter-ministry council, which the government named in a decree last week. The council will also deliver decisions on the rank of countries by degree of risk. Kovacev announced a ranking of countries in six categories, and the ranking will depend on the level of insurance premiums which exporters will pay into HBOR's guarantee fund. Events considered as political risks are war, rebellion and revolution, and measures in the country receiving the exports which limit or prevent payments to exporting countries, as well as all other political events which can cause payment defaults. Commercial risks cover several levels of payment defaults, including the bankruptcy or insolvency of a foreign buyer, which is not caused by the exporter. (Hina) mbr jn 011805 MET sep 98