The execution of the budget is going according to plan, Vamvakidis told Hina, adding that fiscal consolidation this year so far had been very good and that the authorities were committed to continue so for the remainder of 2006.
Vamvakidis highlighted the Government's commitment to a largescale reform of the health sector, the first phase of which is due to begin this year.
He said the Croatian National Bank continued to strengthen supervision over the banking sector. HANFA, which is in charge of supervising the non-banking sector, is working with the government on regulations which are necessary so that it could complete its mandate as soon and as best as possible, he added.
Vamvakidis said the majority of privatisation projects planned for this year proved to be considerably more demanding, complex and difficult than expected, which caused delays. He added, however, that the Government informed IMF officials of the progress made in preparing the privatisation projects and of steps envisaged for the rest of the year.
We believe the implementation of those plans will kickstart the privatisation process, he said.
The IMF Mission, led by Dimitri Demekas, visited Zagreb from May 18. The IMF approved the current stand-by arrangement with Croatia in August 2004 for a 20-month period. In late March this year, the IMF Executive Board of Directors extended it until November 15.
Vamvakidis said he expected the Board to discuss the third re-examination of the arrangement in September.