BAYERISCHE VEREINSBANK AND PODRAVKA SIGN LOAN AGREEMENT

ZAGREB, July 9 (Hina) - Germany's Bayerische Vereinsbank AG and Croatia's food processor Podravka signed an agreement on a DM 60-million loan in Zagreb on Wednesday. The director of the Munich-based bank, Peter O. Koeller, and the president of Koprivnica-based company, Zvonimir Majdancic, signed the deal in Sheraton Hotel. The agreement was reached following several-month-long negotiations and long-standing cooperation between the German bank and Croatian company. Bayerishe Vereinbank AG already granted a loan to Koprivnica d.d., worth 6.3 million German marks, with collateral provided by Germany's Hermes. The loan was given for the financing of investment into capital assets during 1993 and 1994. The latest DM 60-million loan has been granted with the five-year repayment period, and libor +2.5 percent per year interest rate, but at the moment it comes to 5.75 percent. The loan will be used for refinancing short-term and expensive loans granted in Croatia. Wishing Podravka that it may become one of the best firms on the capital market, director Koeller said that this German bank would like to help the Croatian firm to enter the world market. Majdancic stressed that the loan was granted without collateral offered by the State, and added that the loan was a step forwarded in the restructuring of Podravka. The goal of the firm is to earn a profit of 10 percent and augment the turnover to 3.6 billion kuna (approximately 1 billion German marks), according to him. (hina) mš 092221 MET jul 97