CENTRAL BANK ON LAW ON FOREIGN EXCHANGE OPERATIONS

ZAGREB, July 17 (Hina) - The implementation decisions the Croatian National Bank (HNB) adopted recently based on a new law on foreign exchange transactions do not impose new or tighten existing restrictions on the depositing of foreign exchange abroad, the central bank said on Thursday. #L# When the law was being adopted in parliament, it was said that capital transactions with other countries had not been fully liberalised yet. It was underlined that existing restrictions would remain in force when physical persons deposited money abroad until Croatia joined the European Union, the bank said in a statement issued after some media and public workers commented on the implementation decisions the HNB adopted in line with the law on foreign exchange transactions. The statement said the new law, adopted in parliament late in May, represented a significant liberalisation of foreign exchange operations. Another aspect of the law was the adjustment of its provisions to EU standards. The HNB implementation decisions do not impose new or tighten current restrictions applicable when foreign exchange is deposited abroad, the statement said, adding that the new law and its application would directly or gradually liberalise capital transactions. The central bank said it had to keep certain restrictions because allowing citizens to take unlimited amounts of money out of the country to deposit in foreign banks would not benefit the domestic economy but increase Croatia's external debt. The external debt is growing fast anyway and the growth of its share in gross domestic product needs to be curbed, the HNB said. (hina) ha sb