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CROATIAN BANKING SYSTEM NEEDS FOREIGN COMPETITION - SCHWANHOLD

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ZAGREB, Sept 21 (Hina) - High interest rates of 20 to 30 percent, that is, the limitation and high price of capital in Croatia were disadvantageous circumstances for foreign investments, so the Croatian banking system should feel a competition from other banks, head of an economy delegation of the German Parliament, Ernst Schwarnhold told representatives of the Croatian Parliament Committee for economy, development and the state budget.
ZAGREB, Sept 21 (Hina) - High interest rates of 20 to 30 percent, that is, the limitation and high price of capital in Croatia were disadvantageous circumstances for foreign investments, so the Croatian banking system should feel a competition from other banks, head of an economy delegation of the German Parliament, Ernst Schwarnhold told representatives of the Croatian Parliament Committee for economy, development and the state budget. #L# Small and middle-scale German companies should prove their worth in Croatia, the delegation said. Croatia would do everything it can to help German partners with investments in Croatia, the Croatian committee representatives said, adding that cooperation and joint investments of Croatia and Germany should be established in the fields of energy industry, ship-building, food industry, tourism and sports, as well as small- scale entrepreneurship and development of infrastructure in Croatia. Croatia could have a role of a "gate" through which German investors would pass on their way towards the Balkans and Istanbul. (hina) lm 211621 MET sep 96

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