Dalmatinska Banka Credit Line Extension

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Extension to an existing credit line, providing medium- to long-term funding to small and medium-sized investment projects in Croatia. The credit line extension will be used to finance investment projects undertaken by private enterprises in a range of sectors, which would otherwise fall below the Bank's minimum size criteria. There will be a particular emphasis on agribusiness, reflecting the focus of DB's customer base. This will allow the Bank to meet the continued demand for term financing for small and medium-sized Croatian projects and will further strengthen DB's institutional development. Croatia has made substantial progress in restructuring and stabilising its economy, creating the necessary pre-conditions for medium- to long-term investment. The project encourages development of the Croatian financial sector, which will be the backbone for further economic development, and also directly assists small and medium-sized investment projects through the provision of term funding which is not available from other sources. Dalmatinska Banka, d.d. (DB) is a medium-sized privatised Croatian bank operating in the Dalmatian coastal region. At 30 June 1996, DB had total assets of DM 491 million and shareholders' equity of DM 57 million. A credit line extension of DM 20 million (ECU 11 million) to an existing credit line of DM 20 million, approved on 16 May 1995. DM 20 million (ECU 11 million). C/0: The project does not require an environmental analysis or an environmental audit. Sub-projects will be financed in accordance with the EBRD's environmental procedures for financial intermediaries. On an annual basis, DB will report to the EBRD on environmental issues associated with the credit line. None.