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IMF EXPECTS RESUMPTION OF GOOD COOPERATION WITH NEW GOVT - UNIONS

ZAGREB, Dec 10 (Hina) - The head of the International Monetary Fund (IMF) Mission to Croatia, Hans Flickenschild, told local trade union leaders he expected cooperation to remain good with the new government.
ZAGREB, Dec 10 (Hina) - The head of the International Monetary Fund (IMF) Mission to Croatia, Hans Flickenschild, told local trade union leaders he expected cooperation to remain good with the new government. #L# Croatian trade union leaders today held talks with an IMF delegation which arrived in Zagreb to check the implementation of the country's stand-by agreement with the Fund expiring in April. The IMF is satisfied with the cooperation with the outgoing government and expects it will continue with the new one, the president of the Independent Croatian Trade Unions, Kresimir Sever, told Hina, adding that the degree of cooperation would depend on whether a new agreement was signed with the Fund. The union leaders informed the delegation of their expectations of the new authorities -- resumption of dialogue with employers and the government, that unions, employers and the government discuss bills before they are put to parliament, and that the government be represented in the dialogue by ministers. Sever said the IMF delegation announced it would come to Croatia again in February to complete reviewing the implementation of the stand-by agreement. The IMF is satisfied with the five-percent GDP growth, the low 1.75- percent inflation rate, the decreasing unemployment, and the high reserves in the central bank which can cover import costs for as long as five months, said Sever. He added, however, that the Fund was concerned about the current account deficit, which is eight percent of GDP, and the external debt, which accounts for 73 percent of GDP. (hina) ha

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