Croatia

The two per cent crisis tax on incomes ranging from 3 000 to 6 000 kuna will be abolished as of July 1 this year, Prime Minister Jadranka Kosor announced at a government session.

"We want it to give additional stimulus to spending and to boost optimism in the country which we all need," Kosor said.

She thanked all citizens for showing their understanding at the time when the government made "the tough decision" to impose the crisis tax.

Croatian Prime Minister Jadranka Kosor said after meeting representatives of the national employers' association HUP on Friday that this year public companies would make investments worth HRK 12.6 billion and that capital projects worth close to two billion kuna would be additionally financed from the budget.

The investments refer to companies such as the Croatian Power Company (HEP) and the Hrvatske Autoceste (HAC) motorway operator, and to the construction of schools, daycare centres and other facilities, said Kosor.

The Croatian government on Thursday gave state guarantees for loans to the 3. Maj shipyard for several construction projects and to the Brodosplit-Brodogradiliste and Brodotrogir shipyards for financing production and maintaining operations.

At the closed-door part of today's session, the government adopted a decision on giving state guarantees to the Credit Suisse International/Credit Suisse, London Branch, for loans to the Rijeka-based 3. Maj and the Split-based Brodosplit-Brodogradiliste, and on giving state guarantees to J.P. Morgan, London, for a loan to the Trogir-based Brodotrogir.