CROATIA, US CONCLUDE AGREEMENT ON DEBT RESCHEDULING

ZAGREB, Feb 2 (Hina) - Croatian Finance Minister Bozo Frka and the US Ambassador to Croatia, Peter Galbraith, today signed an Agreement on Rescheduling the Croatian Debt to the United States. #L# "This agreement is a new step in the development of Croatian- American bilateral relations," Galbraith said after the signing ceremony. "After the signing of the Dayton Agreement and the restoration of peace in the region, we can expect US business to start investing in Croatia," he said. "The rescheduling of this debt strengthens Croatia's financial and economic reliability on the US market - this is a prerequisite for the entrance of US capital on the Croatian market and the continuation of the US Export Bank credit line to Croatia," Minister Prka said. Under the Agreement, a part of the Croatian debt to the United States (US$ 72 million) is rescheduled for fourteen years, with a two-years grace period and no default interest. This is the first bilateral agreement signed by Croatia, which respects the Badinter Commission's findings on the dissolution of former Yugoslavia and the rights of the successor states. (hina) as 011620 MET feb 96