HNB WON'T COMMENT ON MESIC'S CLAIMS, SAYS ITS MEASURES SUCCESSFUL

ZAGREB, Sept 17 (Hina) - Although the Croatian National Bank (HNB) does not comment on statements by state officials, including the President of the Republic, it reiterates that the measures it introduced early this year have evidently slowed down the banks' credit growth and their borrowing abroad to finance domestic spending, HNB officials have stated. #L# The measures have achieved their basic goal, HNB officials said when asked to comment on yesterday's statement by President Mesic at the opening of the Zagreb International Autumn Fair that the HNB's monetary policy measures were good but slightly belated. Mesic said that he had the impression the monetary authorities had not used their powers timely and adequately to stop the fast growth of the bank sector's external debt. Dismissing these claims, the HNB officials recall last week's statements by the bank's leading officials that the measures have evidently slowed down the credit growth and the banks' borrowing abroad to finance domestic spending. The only measure which could have been introduced instead is capital restrictions, the officials say. However, the central bank estimates that the introduction of capital restrictions is not necessary for the time being, bearing in mind all the negative effects such a measure would have, they add. The HNB officials recall that President Mesic visited the HNB on March 12 this year, when the bank's officials informed him about the problem of the growing external debt and the bank's measures to stop it. On that occasion, the President supported the HNB in its activities, about which the media were informed, the HNB officials say. (hina) rml