Zagreb  - The Croatian government decided Thursday to loosen the country's smoking ban after bar owners complained it was harming business, Zagreb media reported.

Smoking will be allowed in bars and restaurants under strict conditions, including proper ventilation, designated smoking areas and informing customers of the dangers of smoking, media reported.

Parliament will have to approve the new measures before they come into force.

An estimated 30 per cent of Croatia's 4.5 million population are smokers. Bar and restaurant owners have reported a drop in business of up to 80 per cent since the ban came into force on May 6.(dpa)