ZAGREB, Sept 4 (Hina) - Croatian Finance Minister Mato Crkvenac has said that Croatia has no problems with servicing its foreign debt and is liquid and solvent, but that current foreign debt and balance of payments trends are
unacceptable.
ZAGREB, Sept 4 (Hina) - Croatian Finance Minister Mato Crkvenac has
said that Croatia has no problems with servicing its foreign debt
and is liquid and solvent, but that current foreign debt and balance
of payments trends are unacceptable. #L#
Croatia's total public debt, consisting of the internal and
external public debt, the debt of local units, road construction
and issued government guarantees, totals 96.4 billion kuna or 50.8
percent of GDP, Crkvenac said at a government session, adding that
the acceptable level of indebtedness was up to 60 percent of GDP.
The foreign debt (of the state, banks and companies) totals US$19.2
billion. This year the foreign debt increased by 3 billion dollars,
with exchange rate differences accounting for 1.2 billion,
Crkvenac said, adding that these differences could not be
influenced.
The minister claims that all analysts expected the foreign debt to
increase given the development phase Croatia has been
experiencing.
The rising foreign debt is the result of attempts to solve problems
brought on by war and reconstruction, the costs of the financial
consolidation of the economy, the acceleration of economic growth,
the opening of borders, and intensive reforms.
Despite that, the minister says that the current situation does not
call for drastic measures of economic policy.
Crkvenac says that conditions encouraging economic development
will continue to exist in Croatia, that export will be an absolute
priority, and that the policy of high macroeconomic stability,
accelerated employment and rising living standards will continue.
Government members attach great importance to export, increased
activity of the Investment and Export Promotion Agency, the
stimulation of new export products and services and increased
competitiveness.
The foreign debt, the balance of payments, and export are crucial
issues which demand a national consensus, Crkvenac said at the
session, which addressed the problem of indebtedness and the
balance of payments, export-boosting measures and the need to
decrease the balance-of-payments deficit.
1$ = 6.90 kuna
(hina) rml sb