ZAGREB, June 4 (Hina) - Croatian President Stjepan Mesic on Tuesday received representatives of the International Monetary Fund (IMF) led by IMF Mission chief to Croatia Hans Flickenschield, the President's Office said in a
statement.
ZAGREB, June 4 (Hina) - Croatian President Stjepan Mesic on Tuesday
received representatives of the International Monetary Fund (IMF)
led by IMF Mission chief to Croatia Hans Flickenschield, the
President's Office said in a statement. #L#
Flickenschield and John Noregaard, the head of the IMF Office to
Croatia, expressed their views about the current economic
situation in Croatia and macroeconomic policy as well as measures
which the government and the central bank should be carrying out
this and next year.
The IMF said Croatia's economic policy achieved positive results in
low inflation, a decrease in the current section of the balance of
payment and accumulation of foreign exchange reserves, the
statement said.
Problems which need solving include decreasing unemployment and a
faster economic development.
Mesic and the IMF delegation also spoke about the chances of signing
a new stand-by arrangement, about which talks with the government
and the central bank should start in September.
Mesic believes that the best solution seems to be the drawing up of
Croatia's own economic programme which would receive international
support.
In the conditions of high unemployment in Croatia, the success of an
economic policy can be assessed exclusively according to the
unemployment decrease criterion, Mesic said.
He said Croatia had shown it could independently carry out a
responsible stabilisation policy, which is confirmed by one of the
lowest rates of inflation among transitional countries.
Mesic reminded the delegation about an agreement from Monterrey,
that is, conclusions from an international conference on
sustainable development organised by the UN, IMF, International
Bank for Reconstruction and Development and the World Trade
Organisation in Mexico. The agreement stipulates that
international financial institutions must respect national reform
courses and pay special attention to the needs of the countries in
the sense of realising economic development, including employment
and social welfare.
Mesic pointed out the necessity of Croatian citizens and parliament
to be acquainted with negotiations with the IMF and World Bank,
especially if certain obligations will be assumed by them.
Croatia expects from the IMF and World Bank a more serious expert
assistance in forming an independent economic and development
policy, Mesic said.
He said he advocated a "Croatian model of a political and social
partnership" in which a consensus on Croatia's key issues is the
basic condition for the development of reform.
Imposed economic and social reforms under the model "from top to
bottom" could increase the degree of social tensions in Croatian
society, the president said.
(hina) lml sb