WORLD BANK TO ALLOCATE LOAN TO VARAZDINSKA BANK

VARAZDIN, June 23 (Hina) - The World Bank would allocate a 14 million- German mark loan to Varazdinska Bank, in line with an agreement reached in Washington in late May, the president of the bank's administration Mate Lukinic said on Monday. Preliminary talks were held as part of a World Bank project aiming to provide financial assistance for the development of production processes and resources in private or privatized companies which should contribute to Croatia's economic and social development, and back market development for medium-term and long-term investment project financing. The World Bank loan would, according to plan, be intended for small and medium-sized companies, under the World Bank's strict supervision. According to Lukinic, very favourable conditions had been created; the interest rate would be on the level of the average interest rate on the Croatian money market, while clients would get a seven-year-credit with a two-year grace period. (hina) ha rm 231309 MET jun 97