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PM ANNOUNCES RESPONSE TO PRESIDENT ON NEW IMF AGREEMENT

ZAGREB, Dec 19 (Hina) - Prime Minister Ivica Racan said on Thursday he would respond to President Stjepan Mesic's letter requesting additional information on Croatia's new stand-by agreement with the International Monetary Fund (IMF) probably tomorrow.
ZAGREB, Dec 19 (Hina) - Prime Minister Ivica Racan said on Thursday he would respond to President Stjepan Mesic's letter requesting additional information on Croatia's new stand-by agreement with the International Monetary Fund (IMF) probably tomorrow. #L# There is no reason why the answer should not be clear, particularly after the conclusions parliament adopted regarding the deal yesterday, Racan told reporters. Parliament last night with a majority vote adopted the proposed agreement and recommended the government sign it. Racan said that in his letter to Mesic he would reiterate the arguments the government used when it proposed the agreement to parliament. The government maintains the new stand-by deal is good because it ensures macroeconomic stability and ups Croatia's credit rating. Croatia needs the new agreement with the IMF to improve its reputation and credit rating and not because of the funds, said Racan. He added the government expected it to be the last deal with the IMF if the positive processes currently characterising Croatia's economy continued. Racan said he was satisfied with parliament's adoption last night of a resolution and national programme on Croatia's association with the EU, and the endorsement of the IMF deal. He was unhappy with parliament's decision to debate a one-off property tax bill once again from the start. The government will not renounce its bill, but the passing will last longer, said Racan. He added the government insisted on the bill for the same reasons citizens supported it, namely to show that the unlawful acquisition of assets will be punished, even if only through taxation. (hina) ha sb

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