CROATIA'S LEGSI INDEX IN JANUARY 62 POINTS

ZAGREB, Jan 26 (Hina) - The Lehman Brothers Euroasia Group Stability Index (LEGSI) for Croatia in January is 62 points, which is a nominal decrease of three points as against last December, caused by changes in the calculation of the index. The index's real value in January has increased compared to last December, the Croatian Employers' Association (HUP) said in a statement on its web site. Compared to other monitored countries, Croatia is placed fourth according to the value of its LEGSI index, which reflects the political stability of ten countries in transition and some other countries from different parts of the world. Compared to December, Croatia has moved one place up in January. Hungary has the best LEGSI index and is followed by Poland, Bulgaria, Croatia, Russia, Thailand, Turkey, Ukraine, Indonesia and Azerbaijan. The real increase in the value of Croatia's LEGSI index was affected mostly by the ratification of the Stabilisation and Association Agreement with the EU and the signing of free trade agreements with 27 countries. A stable economic growth of around four percent and cuts in social spending as well as the beginning of the consolidation of the health system have also contributed to the improved index. The Zagreb mayor Milan Bandic's drunk-driving scandal, tensions in the ruling coalition in the leadup to the Croatian Social Liberal Party convention and problems on the political scene in Split have negatively affected the value of the LEGSI index. The LEGSI index is issued monthly with accompanying country reports by the US consulting firm Euroasia Group, in cooperation with the Lehman Brothers investment bank. Factors which determine a country's index include the government's political and economic measures and image at home and abroad and the most important events in the area of social affairs, security and economy which marked the monitored period. (hina) rml