IMF: NEGOTIATIONS ON NEW STAND-BY DEAL WITH CROATIA TO START IN MID APRIL

ZAGREB, March 5 (Hina) - The International Monetary Fund welcomes the intention of the Croatian authorities to successfully complete the present stand-by arrangement which expires in several weeks, and to request a successor stand-by arrangement (SBA), the IMF said in a statement on Friday,#L# Negotiations on the new stand-by arrangement should start in mid April. "We are pleased that the government and the national bank find that an SBA is helpful in supporting the implementation of sound economic policies in Croatia. Croatia is facing serious macroeconomic challenges, reflected first and foremost in the high foreign debt, which has continued to increase. Croatia also faces the bigger challenge of preparing for EU entry. We stand ready to assist the authorities in addressing these challenges," the statement signed by IMF Resident Representative in Croatia John Norregaard, said. Norregaard said an IMF team would arrive in Croatia in mid April to begin negotiations on the new arrangement. Strong fiscal adjustment would be a focal point of the talks, he added. (Hina) it sb