GOVERNMENT OF CROATIA AND WORLD BANK SIGN LOAN FOR THE REAL PROPERTY REGISTRATION AND CADASTRE PROJECT The aim of the project is to help in building an efficient land administration system with the aim of contributing to the development of efficient real property markets. In particular, the project will (i) accelerate registration in the cadastre operated within the offices of the State Geodetic Administration and real property registration system which operates in the municipal courts under the jurisdiction of the Ministry of Justice; (ii) streamline both systems and the associated transaction processes; (iii) harmonize data between the two systems and ensure that they match with the reality by undertaking cadastre re-survey where necessary, and land book registration correction; (iv) improve customer relations and service provision, as well as organize awareness campaigns among stakeholders, aimed at supporting professionals, financial institutions, and real property holders; and (v) address impediments to the operation of an efficient mortgage system. "This loan supports a very important activity which affects the entire Croatian society - clarifying land rights and property ownership. Not only is the establishment of a proper land system essential for economic growth in Croatia but this project will lead to faster registration, sales and mortgage actions, contribute to resolution of property disputes and over time reduce the backlog of court cases involving land issues," said Andrew N. Vorkink. The total cost of the project is US$37.2 million, including US$6.6 million from the Croatian Government and US$4.9 million from the European Commission. The World Bank loan of US$25.7 million has a 15-year maturity with a 5-year grace period. Countries with reciprocal agreement Residents of certain countries have permission to buy property in Croatia. Consent can be given to citizens of countries with which Republic of Croatia has signed agreement on reciprocity. These are EU countries, USA, Russian Federation and Hungary. Croatia does not have reciprocity principle with Slovenia and Yugoslavia. Citizens of Italy, Switzerland, and Bosnia & Herzegovina can buy real estate here only if they have permanent residence in Croatia.