ZAGREB, June 13 (Hina) - The real situation in the Croatian economy and the standard of citizens differ sharply from the situation presented in the 2001 annual report of the Croatian National Bank (HNB), members of the parliament said
on Thursday.
ZAGREB, June 13 (Hina) - The real situation in the Croatian economy
and the standard of citizens differ sharply from the situation
presented in the 2001 annual report of the Croatian National Bank
(HNB), members of the parliament said on Thursday. #L#
MPs suggested that the central bank should primarily intensify the
control over commercial banks.
The report, presented by the HNB governor at Thursday's
parliamentary session, says inflation and interest rates
substentially fell in 2001. Last year saw a stability of prices, a
rise in the citizens' foreign exchange and domestic currency
savings, an increase in exports and imports as well as in foreign
exchange reserves and in the Gross Domestic Product.
Such assessment was opposed by Damir Kajin on behalf of the Istrian
Democratic Assembly (IDS) bench, who said that one could conclude
from the report that "Croatian citizens are living in paradise, in a
country of economic growth and prosperity."
Kajin pointed to a rise in the country's external debt which
amounted to 11 billion US dollars. He warned that Croatia needed its
entire GDP to cover the interest rates from the debt's capital sum.
The IDS member believes that the ruling coalition should reach
agreement on incurring further debts.
Jadranko Mijalic of the Croatian Social Liberal Party (HSLS) said
that the HNB report, particularly its segment on the control over
banks, discredited the central bank's work.
Treating the HNB as responsible for the Rijecka Banka scandal,
Mijalic said the HNB control service was not trained for control
over foreign exchange transactions. He backed his claim by saying
that HNB auditors failed to respond to a drastic fall in the foreign
exchange position of the Rijecka Banka in 2000.
Mijalic proposed that the parliament request of the HNB a special
report on control, including up-to-date data on the Rijecka Banka
scandal.
He recalled that since 1990, thirty two (32) banks had gone bankrupt
and the central bank had failed to detect the disorder in their
operations.
Ivan Suker of the Croatian Democratic Union (HDZ) complained that
the foreign exchange savings of Croatian citizens and emigrants had
been unused for development in the past ten years. Keeping the money
in commercial banks, citizens only help those banks, and no
projects are offered to depositors, Suker said.
It is not true that clients can easily get loans for the start of
production and job creation. Loans are easily granted only for car
purchase, the HDZ deputy said.
(hina) ms sb