WORLD BANK GRANTS LOAN TO CROATIA ( Editorial: --> 2432 )

( Editorial: --> 2432 ) ZAGREB, Nov 20 (Hina) - The World Bank granted a DM 52 million loan to Croatia for the development of its private sector and for support to the government's financial reform, Aide to the Croatian Finance Minister, Josip Kulisic, said on Thursday. The loan was postponed in July for political reasons, during the crisis in relations between Croatia and the United States. "We have always been interested in this loan, but due to familiar political problems within the World Bank, it was postponed," Kulisic told Hina. The loan was granted for 15 years with a three to five year grace period, at the LIBOR interest rate with the addition of the bank's expenses, which amounts to some four percent. "These are the best conditions in the world," Kulisic said. The loan is intended for the financing of long-term investment projects of private and recently privatised companies, especially in small-scale and middle-scale businesses. The loan will also support the development of commercial banks. The state of Croatia will be the guarantor, and the loan will be used by the Slavonska Banka (Osijek), Dalmatinska Banka (Zadar), Varazdinska Banka (Varazdin) and Alpe-Jadran Banka (Split). The banks are obliged to provide credit for long-term investments for a period of at least two years. Besides the World Bank's interest rate, the Croatian banks will be able to add their own expenses, which must not exceed two percent, Kulisic said. (hina) lm jn 201804 MET nov 97