CROATIAN GOVT DISCUSSES AMERICAN REQUEST FOR WORLD BANK LOAN POSTP ONEMENT

ONEMENT ZAGREB, June 26 (Hina) - At Thursday's session the Croatian government discussed the postponement of the decision of the World Bank to grant Croatia a $ 30 million loan intended for stimulating investments in the private sector. The government adopted rules on the protection of savings investments, and a Bill on humanitarian organisations and humanitarian help, which it had forwarded to the Parliament. Finance Minister Bozo Prka informed the government about a request of an American representative at the World Bank that the voting on the bank's loan to Croatia be postponed. The $30 million loan, Prka said, is intended for the support of investments in the private sector in Croatia, that is, the cement factory in Komoracno, which is mostly Swiss-owned. With guarantees of the Croatian government, the loan was to be distributed in four Croatian banks. Prka stressed the loan had been agreed on and recommended by World Bank experts, adding that the voting had been postponed to next week because of the request of the American World Bank representative. The loan had not been terminated, because it took more than one representative to do so, although the United States was the Bank' largest stock owner, Prka said. Croatia is also a World Bank stock- holder, but regarding the small amount of stock, it carries out its business through the Dutch executive director, who Prka said was to meet these days. Economy Minister Nenad Porges stressed that politics from economic criteria needed to be differentiated, and suggested that the World Bank's chief legal advisor be present at the Bank's session focusing on the loan to Croatia. Prime Minister Zlatko Matesa said the issue was not about a gift, but a loan, and appointed Minister Prka to report on taken measures within seven days, in order to establish whether Croatia still requested the loan, or would it cancel it itself, because, as he put it, it did not disturb Croatia's financial stability. The rules on protecting savings investments stipulate that banks and savings banks protect investments of physical persons at the State Agency for the Protection of savings Investments and Rehabilitation of Banks. Savings up to 30,000 kuna (US$ 5,000) is guaranteed in full, and up to 50,000 kuna (about US$ 8,300), 75% of the amount is guaranteed. Anything above the amount is not guaranteed. In case of bankruptcy, the bank will begin paying back the protected amounts to savings banks and branch offices of foreign banks, whose investments have been protected according to these rules, within 15 days. The Bill on Humanitarian Organisation and Humanitarian Help establishes subjects eligible for receiving humanitarian help, as well as the type and users of the humanitarian help, working conditions of humanitarian organisations, supervision of their work and freeing and reductions of customs duty and turnover tax. (hina) lm jn 261813 MET jun 97