$ ZAGREB, April 29 (Hina) - Croatian Finance Minister Bozo Prka and Vice Premier Borislav Skegro on Monday held a press conference at which they spoke about the details of an agreement on the rescheduling of debts Croatia signed with
the London Club on April 26 in New York.
CLUB
$
ZAGREB, April 29 (Hina) - Croatian Finance Minister Bozo Prka and
Vice Premier Borislav Skegro on Monday held a press conference at
which they spoke about the details of an agreement on the
rescheduling of debts Croatia signed with the London Club on April
26 in New York. #L#
Finance Minister Prka recalled that on 31 December 1995 the
debt of the former Yugoslav federation to the London Club amounted
to 4,4 billion U.S. dollars of the capital sum plus 1,380 billion
dollars of interest.
With the signed agreement, Croatia took over 29,5% of the debt
or 1,474 billion dollars. The debt would be paid in two
installments.
Installment A includes the matured but unpaid debt which
amounts to 833 million dollars with the time of repayment of 14
years with favorable interest rates and a grace period of 3,5
years.
Installment B includes debts amounting to 643 million dollars
which are not due yet. Those debts will be paid during 10 years in
half-a-year installments without a grace period. For both
installments, Croatia will issue state bonds, Prka said.
Stressing the importance of the agreement, Prka said that it
completely relieves Croatia of any commitment relating to the
former federation on solidarity responsibility of all former
Yugoslav republics for the debt of any of the banks of the former
Yugoslavia.
In the next month, Croatia must have confirmation from the two
thirds of banks (listed according to the amount of their debt) out
of 350 banks which are members of the London Club, on the
cancellation of a clause on joint responsibility.
After that, Prka said, Croatia would be able to place its
bonds on the Luxembourg stock market. Most of the debt had to be
paid to Japanese banks, Prka said.
It is very important for Croatia that the part of the
agreement which says that the part of the debt which Serbia had
bought off through Cyprian banks, would be considered as part of
the succession.
In 1992, using the money from the former Yugoslav National
Bank foreign exchange reserves, some Serbian banks and companies
were buying off the debt of the former state through Cyprian banks,
paying 12 cents per dollar of debt, in order to charge one day the
full value from Croatia and Slovenia. According to the data of
Chemical bank, they are now holding 684,5 million dollars of the
total amount of the former Yugoslavia's debt.
'According to the signed agreement that part of the debt will
enter the succession to the former state', Prka said, adding that
'the Serbs won't like it'.
Vice Premier Borislav Skegro said that all debts of the former
state have been registered. He recalled that the question of the
Basel Club was yet to be discussed. The question includes the
former state's joint gold foreign currency reserves, which would
enter the succession and of which Croatia would get its share.
(hina) rm jn
291831 MET apr 96