These efforts include measures taken by the Government that, among others,have supported fiscal consolidation and improved public finance management,strengthened the system of social protection to provide better safety nets forvulnerable groups and enhanced the efficiency and stability of the financialsector.

Cooperation with the World Bank is of exceptional importance and we valuethe Bank"s support from the very beginning of this cooperation and thevery first approved project - the Emergency Reconstruction Project, as it dulyrecognised the specific need of the Republic of Croatia and adapted itsinstruments accordingly. It remains so today, when Croatia is at the doorstepof the European Union. By approving this new project, the World Bank hasconfirmed its support for the Government"s measures targeted at furtherstabilization of the macroeconomic situation in the Republic of Croatia andalleviation of the impact of the global financial crisis. In line with theadopted four-year Strategy with the World Bank (which ends in 2012), we expectto continue this successful joint cooperation which will contribute to thestrengthening of private sector led growth, reduction of unemployment,improvement of the quality of life and the increase of the sustainability oflong-term development", Suker said.

As Croatia"s partner, the World Bank has been ready to step up itssupport in order to assist the government in addressing the impact of theglobal economic crisis, Horvai said.

Following a EUR 100 million loan last year to help preserve exports andjobs, this EUR 200 million budget support operation aims to assist theauthorities in maintaining macroeconomic stability and an appropriate fiscalframework, assisting the most vulnerable groups in society to cope with the economichardship, and further strengthening the financial sector, Horvai added

The authorities have taken some very difficult decisions to preservemacroeconomic stability, and we hope that this year will provide furtheropportunities for reform enabling the restoration of economic growth andfurther convergence with the European Union. The World Bank is prepared to helpthe country move along the path to economic recovery, Horvai said.

The loan was approved by the World Bank"s Board of Executive Directorson January 12, 2010 at 6-month LIBOR for EUR plus a fixed spread (which wouldcurrently translate into an interest rate of about to 2 percent), due forrepayment after 15 and a half years.

Since joining the World Bank in 1993, Croatia benefited from financial andtechnical assistance, policy advice and analytical services provided by theglobal development institution. To date, the Bank has supported 43 operationswith a total value of USD 2.96 billion, and approved 52 grants with a totalvalue of USD 70 million.