LEGSI INDEX FOR CROATIA HIGHER THIS MONTH

ZAGREB, May 23 (Hina) - Croatia's LEGSI stability for May rose one point compared to March, to 59. The slight increase is the result of positive influences on the economic and social plan prevailing over negative trends in the government and economic spheres. #L# The LEGSI index is gauged by America's Eurasia Group consulting company in cooperation with the Lehman Brothers investment bank. Looking at the economy, analysts assessed as negative an increase of debts, i.e. their share in GDP, which motivated the central bank to slam banks' loan expansion, although the structure of debts was not alarming short-term. They also see as negative the government's changing signals regarding the date of parliamentary elections, as well as a large number of judges opposing the government's proposal that parties may file lawsuits against judges if they believe that a court process was not fair. Judges believe that this could create chaos in the justice system, analysts say. Positively assessed was the atmosphere of security after the signing of the U.S.-Adriatic Charter by Croatia, Macedonia and Albania, and the U.S. stand on these countries drawing closer to NATO. Analysts commended Croatia for its efficient protective measures from SARS spreading into the country, as well as its improved relations with the Hague-based U.N. war crimes tribunal. In the social sphere, analysts commended the way in which Labour Day on May 1 had been celebrated without major protests This month, Croatia advanced by one place on the LEGSI scale, coming ninth after Hungary, Poland, Mexico, Bulgaria, Brazil, Thailand, South Africa and Russia. Following Croatia are the Philippines, Turkey, China, Saudi Arabia, Ukraine, Argentina, Egypt, Venezuela, Uzbekistan, Azerbeijan and Nigeria. The LEGSI index gauges the political stability of countries in transition and other countries from around the world, i.e. their potential and resistance to internal crises. (hina) lml sb