ZAGREB DAILY ACTIVITY REPORT: JANUARY 15, 2010

UNCLAS ZAGREB 000035 SIPDIS E.O. 12958: N/A TAGS: PREL PGOV ECON HR SUBJECT: ZAGREB DAILY ACTIVITY REPORT: JANUARY 15, 2010 ¶1. (U) INAUGURATION FOR PRESIDENT-ELECT JOSIPOVIC TO BE HELD FEB 18: President-Elect of Croatia Dr. Ivo Josipovic's inauguration will be held February 18 in Zagreb. According to Dr. Mirando Mrsic, Josipovic's campaign director, Josipovic is inviting the heads of state or government from all European nations, the United States, Russia, China, Canada and other important countries with whom Croatia has friendly relations. Mrsic said that as of January 15 the Presidents of Bulgaria and Austria had already confirmed, as well as Ivo Komsic of Bosnia-Herzegovina. He said they had also received indications that the EU will be represented by EC President Barroso, and that Russia might represented "at the highest level." ¶2. (U) PM KOSOR ANNOUNCES ECONOMIC STIMULUS PACKAGE; NEW WORLD BANK LOAN FOR CROATIA: Prime Minister Jadranka Kosor announced on January 14 a set of measures to stimulate private sector investment amounting to at least $2 billion (10 billion kuna). The funds will come primarily from bank liquidity freed up by the Croatian National Bank's lowering of reserve requirements. In addition to direct lending for companies through the Croatian Bank for Reconstruction and Development, the government will set up an investment guarantee fund to mitigate private sector risks for banks. Separately, the World Bank also announced on January 14 a new 200 million Euro loan program for Croatia designed to improve Croatia's public administration, reduce its government wage and pension bill, and stabilize the financial sector. ¶3. (U) CROATIA TO DONATE $200,000 FOR HAITI: The Croatian government announced January 14 that it will give approximately $200,000 (1 million kuna) for the victims of the recent earthquake in Haiti. The GoC will donate the funds through the Catholic relief organization Croatia Caritas. FOLEY