EBRD INVESTS ECU 229.97 MILLION IN CROATIA

LONDON, Sept 3 (Hina) - Between September 1994 and July 1996, the European Bank for Reconstruction and Development (EBRD) signed 11 investment agreements worth ECU 229.97 million to finance projects in Croatia totalling ECU 546.88 million. Of ECU 229.97 million, EBRD earmarked 197.71 million to be provided as loans. At the same time, the EBRD turned the foreign debt of the Zagreb-based pharmaceutical and food-processing company "Pliva" of ECU 32.26 million into its ownership share of 11 per cent. Seven investment projects financed by the EBRD will be realized in the private sector and the rest in the state-owned sector. The EBRD also spent ECU 2.6 million on 18 technical cooperation programmes. The bank will encourage the development of the private sector and the privatization process, strengthen the financial sector and support the development of small and medium-size companies in Croatia. It is also considering getting involved in basic business sectors, primarily in shipbuilding and tourism. Of the total amount from the investment agreements, ECU 15.66 million is intended for the reconstruction of war-damaged navigation systems at Croatian airports. The Economy Ministry was granted a loan of ECU 37.7 million for road construction and repairs and the Croatian Electricity Board was granted a loan of ECU 33.5 million. Loans worth about ECU 40 millions were approved for Zagrebacka, Dalmatinska, Agro- obrtnicka and Trgovacka banks. An ECU 5.32 million loan was also granted to the Panonska brewery. At the end of 1994, the EBRD approved nine technical assistance programmes totalling one million ECUs. Four of them were granted to aid the drafting of legislation on banking, securities and environmental protection, two programmes were intended for the energy sector while the rest were designed for the construction and repair of the road network. Last year the bank approved six programmes worth ECU 1.2 million while this year three programmes totalling ECU 400,000 were approved for tourism, banking and environmental protection. (hina) vm jn 031511 MET sep 96