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IMF representatives meet pensioners' leaders

ZAGREB, Dec 14 (Hina) - Representatives of the International MonetaryFund (IMF) held a meeting with the leaders of the Croatian Pensioners'Party (HSU) and pensioners' associations on Tuesday at which theyunderlined that pensions could grow in 2005 only if the growth waswithin the budgetary deficit of 3.7 percent.
ZAGREB, Dec 14 (Hina) - Representatives of the International Monetary Fund (IMF) held a meeting with the leaders of the Croatian Pensioners' Party (HSU) and pensioners' associations on Tuesday at which they underlined that pensions could grow in 2005 only if the growth was within the budgetary deficit of 3.7 percent.

IMF permanent representative to Croatia Athanasios Vamvakidis said that if the Government decided to give one group of budgetary beneficiaries more money, it would automatically have to reduce the amount envisaged for another category.

He said he met HSU representatives to brief them about the IMF's latest talks with the Croatian Government.

HSU president Vladimir Jordan said he told IMF representatives that Croatian pensioners are in an untenable situation given that the average monthly salary is 241 euros, and that about 650,000 pensioners receive only 214 euros, which he added is the brink of poverty.

Vamvakidis said the IMF agreed with the economic policy goals the Government adopted for 2005, adding the most difficult part would be to carry them out. He recalled that the HSU endorsed the 2005 national budget in Parliament.

Jordan said the HSU would no longer agree to decisions regarding pensioners being made without their participation.

"We are willing to negotiate a new model of pension harmonisation provided that in the future, pensions don't lag behind the growth of salaries," he said.

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