CENTRAL BANK COUNCIL ADOPTS MONETARY POLICY PROJECTION

ZAGREB, Dec 18 (Hina) - The Croatian National Bank's (HNB) Council, chaired by governor Zeljko Rohatinski, on Wednesday adopted HNB's monetary policy projection and financial plan for 2003. #L# The central bank managed to achieve its fundamental objective in 2002 in its entirety: the stability of prices and of the exchange rate. HNB's interventions on the foreign currency market, which neutralised appreciation pressures, undoubtedly contributed to the situation. During the interventions, about EUR700 million were purchased and gross international reserves recently for the first time exceeded US$6 billion, the HNB reported. Croatia's macroeconomic stability is expected also in 2003 when Gross Domestic Product should increase by 4.2 percent, while exports would slightly increase and imports stagnate. Should the state budget deficit remain within the foreseen five percent of the GDP and should there be no stronger outside impacts, there will be neither inflation not depreciation pressures which the HNB will not be able to control with its current monetary policy instruments. (hina) it sb