CROATIAN GOVT DISCUSSES FINANCIAL REORGANISATION OF BANKS

( Editorial: --> 4630 ) ZAGREB, Oct 1 (Hina) - The preparations for Pope John Paul II's visit to Croatia have been completed, the Croatian Government reported at a session held on Thursday. Works on four locations where the faithful will meet the Holy Father, have been finished in a very short period and with minimum costs. The Croatian Army engineering units had a special role in carrying out all preparatory infrastructure works, the Government said. The Government also discussed the business operations and the financial reorganisation of four banks - Privredna Banka Zagreb, Rijecka Banka, Splitska Banka and Dubrovacka Banka. It was estimated that the best results were being achieved by Rijecka Banka, which is followed by Privredna Banka Zagreb. The process of financial reorganisation is proceeding well in Splitska and Dubrovacka Banks as well. The Government has also adopted a programme of autumn sowing, which is being amended with a new system of farming incentives, including the lowering of guaranteed prices and cancelling commodity credit financing. Budgetary funds for agricultural incentives will be allocated directly to counties, and not to companies and physical entities as was the case until now. The new system should also result in cheaper raw materials for food and manufacturing industry and in lower prices of final products. Following an objection by the World Trade Organisation (WTO), the Government has annulled its decision prohibiting the import of wheat and wheat products. However, it has adopted a decision on better customs protection by raising the price of wheat from 6.5 cent to 8 cent per kilo wheat. The Government has also authorised the Minister of Maritime Affairs, Transport and Communications to sign two international acts regulating the re-establishment of traffic connections and transport on the River Sava between Croatia and Bosnia- Herzegovina. Prime Minister Zlatko Matesa described the two agreements as very important for the further development of relations with Bosnia- Herzegovina. (hina) jn rml 011730 MET oct 98