Croatian People's Party proposes establishment of economic relief fund.

By bne IntelliNews December 23, 2009
Radimir Cacic, the president of the Croatian People's Party (HNS), proposed the establishment of the economic relief fund, which to help manufacturing and construction. He stressed that the fund will be founded not with the increase in the state debt, but with the use of the existing potential. Cacic pointed out that the state was not used the potential of the Croatian Agency for Small Enterprise (HAMAG), having around HRK 500mn. The economic relief fund would provide loans with maturity up to 10 years. The interest rate on the loans will be up to 7% and there would be a grace period of two years. The fund would give loans to companies, notably in construction and manufacturing sector. The companies, which would have priority, were those, having up to 400 employees and an annual turnover up to HRK 400mn. Cacic said that the fund had to start working immediately, by expressing hope that the ruling coalition would accept the proposal. He said that the party expected a GDP drop of 2% y/y in 2010 and increase in the unemployment. We note that PM Jadranka Kosor said that the government was working on the establishment of the economic relief fund. She expressed hope that the functioning model of the fund would be ready by the beginning of the next year. PM Kosor stressed that the aids will be provided only to those, who meet the criteria, which will be very tough. The government would like to set up such criteria in order to ensure that the funds will be allocated to those, who will try to preserve jobs and try to create new ones. The ministers were working on the model. PM Kosor said that the bankers could also join the team.

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