ZAGREB, Dec 18 (Hina) - Outgoing Prime Minister Ivica Racan said on Thursday his cabinet had demonstrated during its term sensitivity to both development and social issues.
ZAGREB, Dec 18 (Hina) - Outgoing Prime Minister Ivica Racan said on
Thursday his cabinet had demonstrated during its term sensitivity to
both development and social issues.#L#
"This government exploited Croatia's geostrategic position and with
its development projects is leaving Croatia an open country linking
and integrating Europe and leading a European policy," Racan said at
the last session of his cabinet.
He conceded, however, that his government had not done enough to keep
the public better informed about its work. "There was more talk about
conflicts in the (ruling) coalition than about the results the
government achieved, for which we are to blame in good part."
The outgoing ministers today spoke about results and problems in their
ministries.
Finance Minister Mato Crkvenac conceded the issues the Ivica Racan
Cabinet had been unable to solve included the high external debt, an
oversized state administration, parts of the public sector, for
instance health, that were huge money spender, the grey economy, low
exports, and a poorly developed capital market.
Speaking of the external debt, which reached US20.8 billion at the
end of October, Crkvenac reiterated 2004 would be difficult with
regard to debt servicing, but added there was a way of doing it
without bringing into question the state's solvency.
Croatia has to service 13.5 billion kuna next year, of which 8.5
billion to domestic and five billion to foreign creditors, as well as
interest ranging between three and four billion kuna.
Crkvenac said the outgoing government had a projection under which the
greater bulk of the debt, about 8.5 billion kuna, would be serviced on
the domestic market. The amount would be recognised as reserve
requirements to the central bank for banks which took part in the
refinancing, he said.
The minister recalled that 100 million in liabilities to the Paris
and London clubs of creditors was due in January, and that the draft
budget for 2004 drawn up by the Racan Cabinet envisaged a four percent
growth. The draft budget is based on a 2.9 percent GDP deficit, which
is part of a policy of reducing said deficit which this government
introduced upon coming into power in January 2000, when the deficit
was 8.6 percent of GDP, he said.
Speaking of other successes of the Racan Cabinet, Crkvenac said the
settlement of uncollected payments and illiquidity, the constant
reduction of government expenditure, bringing order into the financial
sector, reducing tax burdens, higher production and investments.
The new government has to continue the policy of growth, development
and stability, financial consolidation and deficit reduction, Crkvenac
said, adding that if that were implemented, Croatia would reach the
level of developed countries in 1.5 to two years' time.
(Hina) ha