COUNCIL OF EUROPE LOANS TO RECONSTRUCT DANUBIAN AREA

( Editorial: --> 2553 ) ZAGREB, Sept 23 (Hina) - Council of Europe social development loans will be used for the reconstruction of schools and health care facilities in the Croatian eastern Danube River region. A total of US$10.5million for the reconstruction of schools and US$26.9million for health care facilities have been envisaged by comprehensive contracts with the Council of Europe Fund. The Croatian Parliament House of Representatives on Wednesday discussed the ratification of these contracts and several bills, thus concluding Wednesday's session. The loans for the Danubian area have been granted with a 15 year payment deadline and a five year grace period at the London Inter- Bank Offered Rate (LIBOR), with an additional 0.5 per cent interest rate. As the loan conditions are extremely favourable, MPs stressed that the Fund should be approached for other projects, especially in the social sphere. The Lower House also discussed amendments to the Law on Special Alcohol Tax, and bills on nuclear damage responsibility and animal welfare. (hina) lml jn/sp 231749 MET sep 98