Zagreb, 13 January 2010 – The leaders of the ruling coalition agreed yesterday on the principles of two projects aiming at strengthening the economy – funds for economic cooperation and a project leaning on the Croatian Bank for Reconstruction and Development (HBOR), the effects of which should be felt by the end of February, said the Croatian Prime Minister Jadranka Kosor after the meeting in the government.

“Discharging of foreign exchange reserves and granting loans through HBOR should show their first effects by the end of February and the other model somewhat later. It needs more time because there are more problems and obstacles”, said the Prime Minister.

She explained that in order to grant four to five billion kuna to be placed in economy by business banks via HBOR “there will be an auction at a certain time period” but she did not want to talk about the details because the project which should be confirmed by the Government on Thursday is being prepared “night and day”.

“It is a difficult job, we came across many obstacles but I think I can say that we are successfully overcoming them” said Kosor and added that it is about the money accompanied by state guarantees and that negotiations about interest rates, etc. with business banks are in progress and that all major business banks take part in the development of this project.

The Prime Minister pointed out that it is important to develop strict criteria so the money can go to where it is needed the most and where it will help in maintaining jobs and overcoming crisis till the end of the year.

“One of the basic criteria for granting loans is that loans will be granted to those who need them most, who really need the money to survive and to start functioning better, without any political interference”, said Kosor.