WASHINGTON, Oct 1 (Hina) - A mission of the International Monetary Fund (IMF) will visit Croatia from 24 October to 6 November, sources in Washington confirmed on Tuesday.
WASHINGTON, Oct 1 (Hina) - A mission of the International Monetary
Fund (IMF) will visit Croatia from 24 October to 6 November, sources
in Washington confirmed on Tuesday. #L#
The visit will be an occasion for the resumption of negotiations on
a new stand-by arrangement which Zagreb would like to sign with the
IMF for a period of 12 months. The purpose of this agreement is to
consolidate Croatia's credit rating and confirm the government's
resoluteness in the implementation of its economic policy.
Given that Croatia is not planning to use the money from the Fund,
the new stand-by arrangement will amount only to 50 million
dollars.
During the latest meeting between IMF officials and the Croatian
delegation, there were no indications of a possible negative effect
of Croatia's relations with the UN war crimes tribunal on the talks
on the future stand-by arrangement, the sources from the Croatian
delegation reported.
The delegation, led by a Croatian Deputy Prime Minister, Slavko
Linic, informed the Fund's officials of this year's economic
results and plans for 2003.
IMF officials are satisfied with the growth rate of the Gross
Domestic Product, which is projected at more than four (4) percent,
but they, like the Croatian officials, are also dissatisfied with
and concerned about a deficit which is higher than three (3) percent
of GDP.
The government representatives explained that the deficit would
have been in line with the Maastricht criteria, if it had not
included the price of road construction.
The Croatian National Bank (HNB) Vice Governor, Tomislav Presecan,
said the monetary policy, together with a stable kuna exchange rate
and the expected inflation rate of 3 to 4 percent, was favourably
assessed by the IMF and the World Bank.
Deputy Finance Minister Damir Kustrak conveyed positive
assessments of commercial banks' representatives with regard to
the situation in the Croatian economy. Bankers say that the value of
Croatia's government bonds was only 0.4 percent less than the
government bonds issued by the Czech Republic or Slovakia.
"Once Croatia submits its application for membership in the
European Union, the differences will be completely removed,"
Kustrak said.
According to the finance ministry, in 2003 Croatia would have to
seek loans worth about half a billion euros and 25 billion yen from
foreign banks to cover its deficit and pay due debts.
(hina) ms rml