WASHINGTON, 29 Jan (Hina) - The Croatian Vice Premier Borislav Skegro and the Croatian National Bank (NBH) Governor Marko Skreb stated in Washington on Wednesday they expected that Croatia would be granted the World Bank EFSAL loan
for the reorganization of its financial and public sectors and a three-year arrangement with the International Monetary Fund (IMF) in March this year.
WASHINGTON, 29 Jan (Hina) - The Croatian Vice Premier Borislav
Skegro and the Croatian National Bank (NBH) Governor Marko Skreb
stated in Washington on Wednesday they expected that Croatia would
be granted the World Bank EFSAL loan for the reorganization of its
financial and public sectors and a three-year arrangement with the
International Monetary Fund (IMF) in March this year. #L#
Skegro and Skreb held talks on those projects with the
director of the IMF European Department, Massimo Russo and his
associates, and with the World Bank Vice President, Johannes Linn.
'It is a loan which will facilitate the rehabilitation of
Rijecka banka, Splitska banka and Privredna banka, but it will also
help in the reorganization of large public companies such as the
Croatian Oil Industry (INA), Croatian Electric Power Industry
(HEP), Croatian Post and Communications(HPT), Croatian Railways and
other companies', Skegro told a press conference in the Croatian
embassy in Washington.
According to World Bank data, the loan amounts to some US $
80 million.
NBH Governor Skreb said that by mid March, the IMF board of
directors could grant Croatia a three-year arrangement with the
IMF, which he and Finance Minister Bozo Prka had signed on Friday.
'The arrangement amounts to 350 million special drawing
rights, that is, some US $ 500 million which will additionally
strengthen our reserves', Skreb said.
The division of property of the former Yugoslavia remains one
of Croatia's priorities, Skreb said. The solution of the question
of division of gold and foreign currency reserves of the former
state, amounting to some US $ 600 million, deposited in the Basle
Bank for International Settlement, is expected soon.
Croatia expects to become a member of the Bank for
International Settlements in June this year.
As regards the division of former Yugoslavia's debts, it is
expected that after Slovenia and Croatia, Macedonia too would sign
a similar agreement with the London Club of Creditors - an
association of commercial banks.
Croatia and Slovenia agreed with the Club to take over their
share of former Yugoslavia's debt which approximately covers an IMF
quota of every state. The arrangement does not include debts
towards banks of the Federal Republic of Yugoslavia.
Vice Premier Skegro, who is on a visit to the United States
together with Finance Minister Bozo Prka, presenting the first
issue of Croatian state bonds, estimated that first reactions of
investors were encouraging.
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