The World Bank has approved a loan of 200 million euros to Croatia to support the efforts of the Croatian Government to mitigate the impact of the global economic crisis, as announced by the international organization.
These efforts include measures through which the Government has, among other things, supported budget consolidation, improved the public finance management system, strengthened the social welfare system for better protection of vulnerable groups of citizens, and ensured a more efficient and stable financial sector, according to the World Bank’s statement released on Tuesday. "Compared to other countries in the region, Croatian authorities have relatively well managed the consequences of the global crisis so far," concluded Theodore O. Ahlers, Deputy Director of the World Bank for Central Europe and the Baltic States.
"The current loan is intended to help Croatia maintain macroeconomic stability and an appropriate budget framework and to assist the most vulnerable groups of citizens in overcoming difficulties in the economy, with the goal of further strengthening the financial sector," Ahlers emphasized, adding that the World Bank is ready to assist Croatia in its economic recovery. The loan has been approved with a repayment period of 15 and a half years, with a six-month LIBOR for euros, increased by a fixed interest margin, which would currently mean an interest rate of about two percent, the statement notes. (H)
