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MINISTRY: NEW GOVT. WON'T HAVE PROBLEMS TO PAY DEBTS

ZAGREB, Dec 4 (Hina) - The new government should not have problems to pay back the country's debts next year, as the largest part for the payment of a total of 17.5 billion kuna of the debt the outgoing government had incurred in the country and abroad, will be collected in the second half of 2004, the incumbent government's financial experts have said.
ZAGREB, Dec 4 (Hina) - The new government should not have problems to pay back the country's debts next year, as the largest part for the payment of a total of 17.5 billion kuna of the debt the outgoing government had incurred in the country and abroad, will be collected in the second half of 2004, the incumbent government's financial experts have said. #L# Next year, 8.6 million kuna of the domestic debt and 4.9 billion kuna of the foreign debt are to be collected. This covers the principal, and additional four billion kuna should be ensured for paying interest rates. The largest part of this sum is to be collected in the third and the fourth quarter of 2004, an official in the finance ministry said on Thursday. At the end of January 2004, the government should pay about 100 million dollars to the Paris and London Clubs, and the funds for this purpose have already been secured, the same source said. In other words, one hundred million dollars from the Structural Adjustment Loan (SAL) has not been used this year but it has been transferred for the coming year to cover the said amount. The financing of the State in the first three months of 2004 is secured under a decision on temporary financing, made by the parliament this autumn. The incumbent finance ministry's personnel has prepared a draft budget for 2004, and 80 percent of its items in spending are already known. The revenues, without the income from privatisation, are planned to reach 76.9 billion kuna. The ministry believes that the revenues can rise by additional four billion to some 81 billion kuna, on condition that the current tax system would not be drastically changed. (hina) ms sb

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