ZAGREB, Aug 8 (Hina) - This year's state budget has been executed well and the budgetary deficit will be on the decline for the third consecutive year. Therefore there will be no need for the budget revision, said Croatian Finance
Minister Mato Crkvenac.
ZAGREB, Aug 8 (Hina) - This year's state budget has been executed
well and the budgetary deficit will be on the decline for the third
consecutive year. Therefore there will be no need for the budget
revision, said Croatian Finance Minister Mato Crkvenac. #L#
Speaking of the execution of the budget in line to the plan, the
minister declined to comment on Croatian media's allegations that
the country would go bankrupt and face a financial collapse.
On the other hand, he said, foreign reports, such as reports which
the Merill Lynch and Morgan Stanley houses gave two days ago,
describe Croatia as one of countries in transition where the
repayment of the debts is no problem and where the state is solvent
with a potential of enhancing its liquidity.
The country is meeting its obligations such as the payment of
salaries and pensions exactly on time, Finance Minister told
reporters prior to Thursday's session of the Croatian government.
A state budget for 2003 is being drawn up, technical preparations
are under way, and its final draft can be expected in early
September, he said.
The minister refused the possibility for the devaluation of the
national currency.
The devaluation of the kuna is not possible in the system of a
fluctuating rate of exchange. The kuna remains stable, and a
possible depreciation cannot be at a larger scale.
Crkvenac said the fact that there was no usual appreciation during
the tourist season, despite non-intervention on the foreign
currencies market, could be seen as the proof of the stability of
the kuna.
(hina) ms