IMF DELEGATION ARRIVES IN ZAGREB THURSDAY

ZAGREB, May 22 (Hina) - A delegation of the International Monetary Fund, headed by Hans Flickenschild, will arrive in Zagreb on Thursday for regular annual consultations. It is expected that Croatia and the IMF will start talks on a new arrangement, the Croatian National Bank said in a statement. #L# The IMF delegation will visit a number of institutions which are important for economic development, financial stability and structural reforms in Croatia, as well as some leading banks. According to unofficial information from government sources, it is expected that the platform of an agreement on the new arrangement will be signed during the mission's two-week visit. The platform would be discussed in parliament, in line with parliamentary conclusions, and the IMF's Committee of Executive Directors could consider it in autumn, government sources estimate. The government's starting positions for discussion with the IMF are contained in the document "The Bases of the Government's Economic and Financial Policy in 2002 and 2003". The government estimates in the document that this year's economic growth will be 3.5 percent and next year's four percent. It also forecasts a low inflation rate of 4.3 percent in this year and a 3.5 percent inflation rate next year. It is expected that the budgetary deficit will further decrease, to 4.2 percent of GDP this year and to 2.5 percent next year. Stimulating employment and increasing the standard of living are the main objectives of the government's economic and financial policy. Last year Croatia and the IMF signed a stand-by arrangement which expired in mid-May this year. (hina) rml sb