The Croatian government on Thursday launched the signing of a EUR 150 million economic recovery loan with the European Bank for Reconstruction and Development (EBRD).
This is the second such loan. The first one, in the same amount, was signed in 2011 for economic reform programmes in the medium term aimed at increasing growth.
"In order to get the second loan instalment, we had to meet many additional measures agreed with the EBRD, which all the relevant ministries met in these two years," Finance Minister Slavko Linic said.
The measures are aimed at strengthening fiscal sustainability and creating an environment which stimulates economic growth, he added.
In order to strengthen fiscal sustainability, it was necessary to strengthen fiscal discipline in the health sector, the efficiency of public administration and the effectiveness of social compensation by steering spending towards carefully chosen programmes, the downsizing of the social welfare network and the strengthening of the pension system's financial stability, Linic said.
In order to create an environment which stimulates growth, it was necessary to make many changes and increase flexibility in collective bargaining, encourage active participation on the labour market, reduce administrative and regulatory obstacles to business, reduce the state's stake in enterprises, and strengthen the framework for innovations, the minister said.
An EBRD team concluded that all the measures and demands were carried out in the past two years, so the EBRD management will be able to grant on April 29 the EUR 150 million loan for 15 years, Linic said.
The interest rate would be the six-month Euribor, increased by a small fixed fee, amounting to 1.17 per cent today, and it will be paid in 2029, he added.
Also today, the government launched the signing of a EUR 75 million EBRD loan for a programme aimed at improving the quality and effectiveness of health services.
(Hina)
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