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IMF ON CROATIA

ZAGREB, Aug 15 (Hina) - The International Monetary Fund (IMF) supportsthe plans of the Croatian government to continue reducing deficit andtax burden in the middle term period, the IMF has said in itsassessment regarding a request for a new stand-by deal.
ZAGREB, Aug 15 (Hina) - The International Monetary Fund (IMF) supports the plans of the Croatian government to continue reducing deficit and tax burden in the middle term period, the IMF has said in its assessment regarding a request for a new stand-by deal.

On 4 August 2004, the IMF Executive Committee approved a US$141 million stand-by loan arrangement for Croatia for a 20-month period, to support the country's economic program. The Croatian authorities have said they intend to treat the arrangement as precautionary and are not planning to withdraw the approved funds.

The IMF said Croatia had been recording a fast growth and low inflation rate since the mid-1990s which, however, had resulted in a higher external imbalance, notably in the last several years.

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