Bjelovarska Banka Credit Facility Summary Of Project Information (SPI)       Project Name:    Croatia: Bjelovarska Banka      Region:Central & Southern Europe   Sector:   Project No:009101   Projected Board Date:May 7, 1999   Company Name:Bjelovarska Banka   Technical Partner and/or Major Shareholders    	Steirmaerkische Bank (SB) and Erste Bank (EB), both Austrian banks, jointly own just over 50% of Bjelovarska Banka (BB), split evenly. Other shareholders include Croatian companies and individuals, with no single entity owning more that 5%.  SB, based in Graz, 150 km from Zagreb, is the main regional bank for Southern Austria; while EB is Austria''s second largest commercial bank.  The Croatian market is of strategic importance to both SB and EB as a significant number of their clients have Croatian business interests.  Both SB and EB provide technical assistance and long-term funding commitments to BB.    Project Cost Including proposed IFC investment    	IFCs investment is a US$15 million equivalent loan.    Location of project and Description of site    	Bjelovarska Banka is based in Bjelovar, Croatia, about 80-km northeast of Zagreb. BB is increasingly expanding the geographic scope of its lending activities to other regional business centers.     Description of Company and Purpose of Project    	BBs predecessor bank was founded in 1959 as a regional savings bank.  Over the years, BB broadened its activities, changed it name to Bjelovarska Banka, was privatized in 1993 and recapitalized in 1997 when SB and EB acquired, collectively, a majority ownership stake.  The Banks strategy is to become a nationwide universal commercial bank.     Funding for small and medium sized enterprises (SMEs) remains scare in Croatia due to the liquidity shortage in the banking sector and the preference of many banks to lend to larger borrowers.  BB has been successfully providing term finance to SMEs, but faces a market demand for loans in excess of its funding sources.  Through this project, IFC would provide additional funding to BB for on-lending to Croatian SMEs.  In addition, through prudential financial covenants and operating guidelines, IFC would support the institutional development of BB.     Environmental Category and Issues    	This is a Financial Intermediary (FI) Tier 2 project according to IFC''s environmental review procedure. Bjelovarska Banka will be required to undertake an environmental review of each subproject to ensure compliance with host country requirements, IFC environmental and social safeguard policies, and, if applicable, World Bank Group environmental, health and safety guidelines. IFC will assess Bjelovarska Bankas capability to carry out environmental reviews.  Bjelovarska Banka must obtain IFC clearance prior to making any investment with IFC funds in any Category A project.    The  is  from the InfoShop.       Date SPI sent to InfoShop:     April 6, 1999      This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporations Board of Directors.  It is provided for the purpose of enhancing the transparency of IFCs activities and should not be construed as presuming the outcome of IFC Board consideration.    For Additional Information contact:  Corporate Relations Unit -   telephone: (202) 473-7711   facsimile: (202) 974-4384