ZAGREB, May 12 (Hina) - A delegation of the International Monetary Fund (IMF) led by Hans Flickenschild, arrived in Zagreb to assess the course of implementation of Croatia's stand-by arrangement with the Fund. The delegation on
Monday held talks with the governor of the Croatian National Bank (HNB), Zeljko Rohatinski.
ZAGREB, May 12 (Hina) - A delegation of the International Monetary
Fund (IMF) led by Hans Flickenschild, arrived in Zagreb to assess
the course of implementation of Croatia's stand-by arrangement
with the Fund. The delegation on Monday held talks with the governor
of the Croatian National Bank (HNB), Zeljko Rohatinski. #L#
According to the HNB, Rohatinski informed the delegation about very
favourable macroeconomic indicators for the past four months. In
April, an annual level of inflation was 0.9 percent and it looks
like it should remain below 2.5% for the entire year.
The kuna dropped by 3.4% comparing to the euro in this year's first
quarter, but in April, it grew to around 7.60 kuna per euro and
remains at this level.
Available foreign reserves remain at last year's level, which is in
accordance with the stand-by arrangement criteria for the end of
the first quarter.
The central bank's measures from January have begun to yield
results, so the growth of bank loans continued to gradually drop in
the first 20 days of April. But only controls in banks will show
whether data submitted to the HNB are founded on true trends.
If banks have found ways to by-pass the restrictive measures, the
HNB is prepared to undertake additional steps to maintain bank
loans at acceptable levels, enabling economic growth without
overindebtedness abroad and unsustainable balance in current
accounts.
Saying that Croatia has become 'boring' with its rate of inflation,
like developed countries, Flickenschild asked what other measures
the HNB could undertake to keep current trends under control and how
it can count on support of fiscal policy, as well as about the
cooperation between the HNB and the finance ministry.
The delegation head was satisfied about Rohatinski's assurance
that despite the sudden growth of loans, the banking system would
remain stable.
The IMF delegation will this week also hold more talks at the
central bank, as well as with officials of the government, finance,
economy, labour and welfare, tourism and health ministries, the
Croatian Institute for Health Insurance, several commercial banks,
unions and some associations and institutions.
(hina) lml