EUROPEAN DEVELOPMENT BANK TO BE ESTABLISHED MAY 30

EUROPEAN DEVELOPMENT BANK TO BE ESTABLISHED MAY 30

The remaining hurdles to the foundation of the new European Bank for Reconstruction and Development have been cleared and the institution will be created formally in a ceremony here May 30, Jacques Attali, a top adviser to French President Francois Mitterrand and chairman of the bank's negotiations said Monday.

The only remaining obstacles include who the bank's president will be and where the bank will be located. However, Mr. Attali said these two questions will be resolved before the signing date.The thorny issue of Soviet participation in the bank was settled when the Soviet Union agreed to limit voluntarily its access to loans from the institution to the amount of its paid-in capital for a three-year transitional period, Mr. Attali said.

Since the Soviets will have a 6 percent share in the bank's 10 billion European currency unit capital, its total paid-in capital will amount to 180 million ECUs. After the three-year period it can apply for unlimited access to loans from the bank, which could require the approval of 85 percent of bank votes.