(Illustration: Gerd Altmann/Pixabay) (Illustration: Gerd Altmann/Pixabay)

The first $300 million loan will assist Croatia in coping with the economic effects of the pandemic, while the second $200 million loan will go toward reconstruction of damage caused by the March 22 earthquake in Zagreb.

The World Bank in Croatia said the international lending insitution was supporting Croatia in overcoming the challenges of the difficult period brought by the Covid-19 pandemic and the recent earthquake.

“The $300 million loan for development policy in response to the crisis and recovery, supports the Government’s rapid and targeted packages of economic measures, approved in March and April 2020 to mitigate the economic and social effects of the coronary crisis,” the World Bank said, adding that, “It is also aimed at resolving long-standing institutional shortcomings in Croatia and lays the foundations for an inclusive and sustainable recovery.”

“Economies around the world face a number of very demanding challenges caused by the pandemic. We are aware that the World Bank, as one of the leading international financial institutions representing a significant source of liquidity, carefully selects the projects and programs it will support. Therefore, we are proud that the Bank has recognized the initiative and efforts of the Government of the Republic of Croatia by approving this important instrument, which will contribute to strengthening the implementation of measures to deal with the current crisis,” said Finance Minister Zdravko Marić.