ZAGREB, 31 May (Hina) - Croatia's joint and several obligation to guarantee the repayment of former Yugoslavia's debt has been cancelled, since by 29 May, 78% of 350 banks which hold former Yugoslavia's debt, agreed to the
requirements of Croatia's transaction, a statement from the Finance Ministry said.
ZAGREB, 31 May (Hina) - Croatia's joint and several obligation to
guarantee the repayment of former Yugoslavia's debt has been
cancelled, since by 29 May, 78% of 350 banks which hold former
Yugoslavia's debt, agreed to the requirements of Croatia's
transaction, a statement from the Finance Ministry said. #L#
The statement recalled that on April 26 this year, Croatia and
London Club signed in New York an agreement on the rescheduling of
former Yugoslavia's debt and the agreement had to be approved by
67% of 350 banks that hold the debt.
With the agreement, Croatia took over 29,5% of some 4,4
billion US dollars of former Yugoslavia's debt. The debt was
rescheduled from 14 to 3,5 years of grace period, that is, to 10
years for unpaid outstanding liabilities.
The debt of former Yugoslavia, held by Serbia and Montenegro,
which amounts to 685 million dollars, is not included in the
agreement signed between Croatia and London Club, the statement
said.
The transformation of the old debt into new bonds of the
rescheduled debt means: the severing and separation of Croatia's
share from former Yugoslavia's debt, the cancellation of joint and
several liability with other debtors, and the relieving of the
burden of matured debts.
The rescheduling of the debt also strengthens the credibility
of Croatia's financial factors in the international financial
community and improves its reputation. It also secures Croatia's
integration into world economy and opens new lines for the
financing of trade and development projects in Croatia, said the
statement, signed by Finance Minister Bozo Prka.
(hina) rm
312302 MET may 96