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Croatia's President visits EBRD in London
Bank signs Uljanik ship-yard deal, says foreign investment crucial
Croatian President Stjepan Mesic visited the European Bank for Reconstruction and Development today to meet with the Bank's President, Jean Lemierre, and address representatives of its 62 shareholders. He also attended the signing of a new facility under which the EBRD will finance a shipbuilding contract at the Uljanik Shipyard.
Mr Lemierre praised Croatia's progress towards establishing a market economy and welcomed its two successive years of economic growth. But he stressed the need to open the economy up more to foreign direct investment. This year Croatia is expected to attract $470 million of FDI compared with $870 million in 2000 and $1.45 billion in 1999.
To date, the EBRD has signed 36 projects in Croatia, with a total commitment by the Bank of €916 million. Together with co-financiers and other investors, the EBRD has helped mobilise roughly €2.8 billion in investment for the country. But the past 12 months have proven to be the most successful with the Bank expecting to do €300 million of business this year. Mr Lemierre said this was evidence of investor interest in Croatia.
Some of the EBRD's highlights this year include deals with private companies like GSM mobile phone company VIP NET and glass bottling company Vetropack. To promote small and medium-sized enterprises, the EBRD worked through local banks such as Privredna and with partners like the Council of Europe Development Bank. In the infrastructure sector, EBRD projects included the Rijecka-to-Zagreb motorway and a new wastewater treatment system in Zagreb. The Bank invested as well in the environmental upgrading of the Rijecka refinery.
Mr Lemierre said the Bank would work with Croatia to build on the momentum created this year and deepen the roots of the country's growing market economy. He noted that one of the key priorities for Croatia in 2002 would be privatisation, especially in the tourism sector.
To support the restructuring and privatisation of Croatia's shipbuilding industry, the EBRD will provide a guarantee facility of up to €15 million to assist in the construction of a new tanker at the Uljanik Shipyard, one of five state-owned yards. The facility is designed to encourage the yard in strengthening governance and increasing its commercialisation.
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