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Deputy P.M. comments on debt repayment talks with pensioners

ZAGREB, July 11 (Hina) - The government cannot provide guarantees forthe payment of the nominal amount of the debt to pensioners who optfor the full amount of the debt to be paid over a period of six yearswith a two-year grace period, Deputy Prime Minister Damir Polancectold reporters in Zagreb on Monday after meeting the pensioners'representatives.
ZAGREB, July 11 (Hina) - The government cannot provide guarantees for the payment of the nominal amount of the debt to pensioners who opt for the full amount of the debt to be paid over a period of six years with a two-year grace period, Deputy Prime Minister Damir Polancec told reporters in Zagreb on Monday after meeting the pensioners' representatives.

The government, however, is ready to leave it to the pensioners to choose managers to run the Debt Repayment Fund, which will be jointly managed by the government and the pensioners. During the two-year grace period, the Fund is expected to accumulate funds to be used for debt repayment over a period of eight years.

"The talks are going in a positive direction. We are much closer to a final settlement and I expect we will reach a full agreement by Wednesday," Polancec said.

For pensioners who opt for the accelerated debt repayment over a two-year period, a final settlement will be arranged by the statute of the Fund, which is currently under negotiation. If agreement is reached, a bill on the Fund and its statute will be discussed by the government this week, the deputy prime minister said.

The government and the pensioners will continue the negotiations on Tuesday after the pensioners consider the government's proposal.

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