PARLIAMENT SUPPORTS HNB'S ANNUAL REPORT

ZAGREB, June 26 (Hina) - Even though they have supported the annual report of the Croatian National Bank (HNB), opposition benches in the Croatian parliament have warned about the unfavourable structure of the country's Gross Domestic Product and a worrying increase of the foreign debt, which, they say, could result in the "South-American syndrome". #L# Jadranko Mijalic (of the Social Liberals) warned about what he called a disastrous GDP structure, with public spending based on loans accounting for its largest part. Warning about a worrying increase in the foreign debt, caused by commercial banks taking loans abroad, Mijalic said that this "inflated the indebtedness of Croatian citizens", which he believes could lead to a chain of personal bankruptcies and the "South-American" syndrome. He also warned about last year's 37% drop in foreign investments. The HNB's report does not mention the reform of the bank's control sector, Mijalic said, adding the sector had not reacted adequately in the case of Rijecka Bank. Tonci Tadic of the Croatian Party of Rights/Croatian Christian Democratic Union bench requested data on the solution of the Rijecka Bank case, as well as data on Dubrovacka Bank, which he claims the State Agency for the Rehabilitation of Banks had sold unlawfully. (hina) rml sb