STATUTORY COMMITTEE REPORT
TO:    The President, International Bank for Reconstruction and Development
Report of the Committee under Section 4 (iii) of Article III of the Articles of Agreement
on the proposed Loan (Second Economic Recovery Development Policy Loan) to the
Republic of Croatia.
The undersigned Committee constituted under Section 7 of Article V of the Articles of
Agreement of the International Bank for Reconstruction and Development (the Bank) hereby
submits its report pursuant to Section 4 (iii) of Article III of said Articles in respect of the
proposal that the Bank grant to the Republic of Croatia (the Borrower) a loan in an amount of one
hundred and fifty million Euro (E150,000,000). The purpose of said loan is to support measures
that aim to: (i) enhance fiscal sustainability through expenditure-based consolidation; and (ii)
strengthen the investment climate.
1.    The Committee has carefully studied the merits of the proposal to grant such a loan, and
of the purpose to which the proceeds of the loan are to be applied.
2.     The Committee is of the opinion that the program in support of which the proceeds of
such loan are to be applied comes within the purposes of the Bank as set forth in Article I of said
Articles of Agreement, and that said program is designed to promote the development of the
productive facilities and resources of the Republic of Croatia and is in the interest of the Republic
of Croatia and of the members of the Bank as a whole.


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REPUBLIC OF CROATIA                               (Second Economic Recovery
Development Policy Loan)
3.     Accordingly, the Committee finds that said program merits financial assistance from the
Bank, and hereby recommends said program for such assistance.
COMMITTEE
Senior Vice President and
oup General Counsel
t pt Selected by Governor for
Republic of Croatia
Regional Vice President
Europe and Central Asia
Vice President
World Bank Group Chief Risk Officer
Senior Vice Presi  t, Development
Economics and Chief Economist
Dated at Washington, D.C.
6Ao L