CRO BANK TO SIGN DEAL ON SYNDICATED LOAN, WORTH 400 MILLION DM

ZAGREB, June 9 (Hina) - The Zagrebacka Bank d.d. will sign a contract on a loan, worth 400 million German marks, with the syndicate of 53 foreign banks of 14 countries, in London on June 12. The repayment time is three years, and the repayment will have to be done at once following this three-year period, whereas the interest rate is LIBOR increased by 0.50 per cent a year. It would be the highest syndicated loan so far organised for a commercial bank in central and south-eastern Europe, being also the highest credit transaction for a user from Croatia, Zagrebacka Bank officials said on Monday at a news conference in Zagreb. Granted means which would be drawn a month following the signing of the deal, would be used for re-financing of a syndicated loan, worth 160-million German marks, granted a year ago, as well as for general purposes in crediting of economy and citizens, the Zagrebacka Bank administration's president, Franjo Lukovic, told the conference. The head of the commercial financing and syndicating of Dresden Bank Luxembourg, Dietmar Stuhrmann, said that Zagrebacka Bank had previously proposed that this loan might amount to 300 million marks. However, because of growing interest it was decided to raise the first amount by additional hundred million German marks. Dresdner Bank was the leading arranger also in the first syndicated loan the Croatian bank had got on the international market a year ago, he added. The Chase Manhattan Bank executive director, Homi Mullan, pointed out the significance of cutting down the interest rate, which had been LIBOR plus 3 per cent last year for the Zagrebacka Bank, to LIBOR plus 0.50 per cent, and explained that it showed the confidence international financial circles had in that bank and Croatia. Croatia was making a recognisable market name for itself by this success, Mullan added. (hina) jn mš 092056 MET jun 97