Addressing the Board, Croatian Prime Minister Jadranka Kosor said the EBRD meeting was taking place in Zagreb at a very important moment for Croatia, which is nearing the completion of its accession negotiations with the European Union.

The EBRD is an important partner in Croatia in a series of projects of national and regional importance, Kosor said.

Croatia expects cooperation with the EBRD in launching a new investment cycle and in the support to entrepreneurs, she said.

Therefore, an increase in EBRD capital as well as a planned increase in the volume of investments of this bank in the coming period suits Croatia, the Croatian premier said.

EBRD President Thomas Mirow said that recovery was visible in many countries in which the bank operated, but this recovery was relatively sluggish and would take much time, according to a majority of indicators.

Mirow cited macroeconomics and fiscal stability as the foundations of recovery and called for prevention of recurrence of macroeconomic and financial imbalances.

He also urged developing local currency capital markets to overcome addiction to foreign currency debt and encourage stronger reliance on domestic savings.

Mirow added that there is need for effective competition policies and lower barriers to the creation and growth of small and medium-sized enterprises.

The bank's Board of Governors is expected to make a decision on increasing EBRD capital to EUR10 billion as well as to formulate an EBRD plan for investments in the next five years.

The EBRD annual meeting is taking place in Zagreb on 14-15 May, with more than 2,000 participants attending the event.

The EBRD, which has more than 60 members, is an international financial institution which supports projects in 29 countries in the region from Central Europe to Central Asia.