ZAGREB, Dec 21 (Hina) - Croatian Premier Ivica Racan on Saturday sent an open letter to President Stjepan Mesic who asked him to give additional information about reasons for conclusion of a new stand-by arrangement with the
International Monetary Fund.
ZAGREB, Dec 21 (Hina) - Croatian Premier Ivica Racan on Saturday
sent an open letter to President Stjepan Mesic who asked him to give
additional information about reasons for conclusion of a new stand-
by arrangement with the International Monetary Fund. #L#
In his letter Racan wrote that "the most important elements of
Croatia's social and economic policy are not determined by the
arrangement with the IMF but by the policy led by the government,
budget and Croatian laws."
The social and economic policy was discussed by the government and
the parliament before the conclusion of the deal with the IMF. That
is why the arrangement with the IMF does not mean that Zagreb takes
over international obligations, but it means the confirmation of
obligations the government and the country define in their
programmes and laws, Racan wrote to Mesic.
He reiterated that "reforms are primarily in economic and social
interest of Croatia so that it can in the foreseeable future become
a European Union full member..."
"The stand-by arrangement, which was supported by the Sabor on 18
December 2002, had been considered, during preparations, by all
institutions of the Republic of Croatia. Also, the IMF mission
discussed with Sabor officials and with You (4 June 2002) basic
elements of the arrangement," the premier wrote.
Racan added that advantages and shortcomings of the deal had been
thoroughly analysed before the government and the parliament
decided on the matter, and that the President Mesic's cabinet had
been notified of that.
Racan wrote that Croatia had not asked for the stand-by arrangement
with the IMF for usual reasons for the conclusion for such deals
such as the financial support to the maintenance of a country's
solvency abroad, given that Croatia's position in this regard was
more than good.
Strictly speaking, 140 million dollars, secured by the IMF in this
stand-by arrangement with Croatia, is not necessary at all, the
premier wrote.
"What Croatia needs and what this arrangement offers is the support
to our credibility, seriousness and safety in the eyes of
investors. And Croatia needs investors.... The stand-by
arrangement makes it possible (for Zagreb) to re-finance Croatian
debts on international markets under lower interest rates - and
this eventually means saving for all tax payers," the letter read.
Besides, this arrangement facilitates Croatia's cooperation with
other international financial institutions such as the World Bank,
the European Investment Bank etc.
"For the past two years, Croatia has enjoyed a long-term credit
rating BBB-, which labels Croatia and its economy as suitable for
investment," the premier said adding that the new stand-by
arrangement with the IMF can enhance the country's credit rating.
(hina) ms