CROATIAN PARLIAMENT ENDORSES BILL ON FOREIGN EXCHANGE OPERATIONS

ZAGREB, May 20 (Hina) - A government-sponsored final bill on foreign exchange operations was endorsed by all party benches in the Croatian parliament on Tuesday. Supporting the bill, MPs expressed hope that the planned liberalisation in those transactions would create better conditions for Croatian citizens and companies' business operations abroad. #L# With the signing of the Stabilisation and Association Agreement (SAA) with the EU, Croatia assumed the obligation to liberalise some segments of financial operations, such as one referring to long-term loans in the period of four years after the SAA takes effect. The complete liberalisation as regards short-term loans should be made possible with Croatia's full EU membership at the latest, Deputy Finance Minister Damir Kustrak said. The major novelty stipulated by the bill is that Croatian citizens will be allowed to invest money directly abroad and for the purpose of acquiring real estate when they meet legally defined conditions. They would be allowed to invest in securities abroad, and issue, list and sell foreign securities in Croatia and Croatian securities abroad. Citizens would be also allowed to invest in short-term securities assuming the obligation that they would report about the dealings to competent bodies. Under the bill, Croatian companies would be able to settle the compulsory surrender of foreign exchange, assignment, transfer conveyance without the approval of the Croatian National Bank (HNB). The transactions can be liberalised only with Croatia's accession to the EU. The HNB would be able to carry out external payments for the country's needs. Gold would no longer have a monetary function but be treated as any other goods. (hina) ms sb