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Croatia: U.S. Continues To Stall Loan

Washington, 26 June 1997 (RFE/RL/) - The United States has requested a second postponement of a proposed World Bank loan for Croatia because of dissatisfaction with the Zagreb government.

State Department spokesman John Dinger said yesterday that the Bank will not begin to consider the loan until next week at the earliest.

World Bank sources said a vote on the $30 million loan is now set for next Tuesday.The loan was initally scheduled to be approved on Monday but at America's request was delayed first for three days and now for several more days.

Dinger said the U.S. hopes to have a longer delay to have time to monitor Croatia's compliance with the Dayton Peace Accords.He reiterated U.S. dissatisfaction with the Croatian government's cooperation on war criminals and the return of Serb refugees.

Dinger said Croatia's poor compliance with Dayton raises doubts that it will abide by other international agreements, including financial ones.