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Govt. to issue new bonds on internal market

Autor: ;mses;
ZAGREB, Feb 9 (Hina) - The Croatian Government on Thursday decided toissue bonds of two billion kuna on the domestic market.
ZAGREB, Feb 9 (Hina) - The Croatian Government on Thursday decided to issue bonds of two billion kuna on the domestic market.

The bonds should serve for covering the payment of loans during this year.

The bonds will be issued for a period of 10 years with the fixed interest rate of 5.25 percent.

Finance Minister Ivan Suker dismissed claims that the issuance of the new bonds would mean an increase in the country's external debt for fear that banks could buy a larger share of the bonds.

Pension insurance funds, insurance companies and other participants in the capital market will buy a large segment of this issuance, he said.

The government also set up a task force in charge of drawing up a bill on salaries of employees in the state sector.

(1EUR = 7.4 kuna)

(Hina) ms

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