We welcome the IMF's opinion, it is the definitive validation of Croatia's economic maturity, Sanader said, announcing that in November, when the current stand-by arrangement with the IMF would be completed, Croatia would not sign a new arrangement but base further contacts with the IMF on Article IV.
This means that IMF representatives will come to Croatia once a year for a briefing about the implementation of the economic policy, he said.
As of today, and formally as of November, Croatia will lead its economic policy independently, without the IMF or a stand-by arrangement, Sanader said, adding that Croatia had led an independent economic policy until now as well.
He underlined that the European Commission welcomed the IMF's opinion today as well.
Answering questions from the press, Sanader said that some in the European Union had probably thought Croatia should have a new stand-by arrangement, but that after the IMF's opinion the EU was agreed about future contacts being based on Article IV.
Sanader said that when the government signed the stand-by arrangement in 2004 it wanted, through cooperation with the IMF and by using its funds and experts, to tackle two major issues -- a high national deficit and a rampant external debt.
The IMF has given a good assessment of strong fiscal adjustment, reduction of the deficit from 6.3 per cent of GDP in 2003 to three per cent this year, and of the fact that this year higher revenue has not been used for spending but to cut the deficit, said the PM.
The IMF particularly appreciates the fact that the external debt has been cut by EUR911 million over the past two and a half years as well as its slower growth, said Sanader, recalling that the annual growth rate in 2003 was 36 and today 12 per cent.
Continuation of privatisation and restructuring of the shipbuilding industry are two areas in which more work is necessary, Sanader said, adding the government was working on them.