ZAGREB, Jan 24 (Hina) - The Croatian parliament's House of Representatives on Wednesday evening wrapped up a debate on a bill on the Croatian National Bank (HNB) and a bill on changes to the foundations of the foreign currency system
in the first reading, however a vote was not taken due to lack of quorum. Changes to the foreign currency system will liberalise foreign currency transactions and enable companies to obtain foreign currency loans, buy foreign currency and deposit it on their accounts. Companies would also be able to exchange one currency for another in order to protect themselves from too high oscillations in exchange rates. These changes were endorsed by all deputies, but some of them objected to the fact that the explanation accompanying the bill, apart from the first stage - liberalisation of the foreign currency system - also included three other stages whose ultimate result
ZAGREB, Jan 24 (Hina) - The Croatian parliament's House of
Representatives on Wednesday evening wrapped up a debate on a bill
on the Croatian National Bank (HNB) and a bill on changes to the
foundations of the foreign currency system in the first reading,
however a vote was not taken due to lack of quorum.
Changes to the foreign currency system will liberalise foreign
currency transactions and enable companies to obtain foreign
currency loans, buy foreign currency and deposit it on their
accounts. Companies would also be able to exchange one currency for
another in order to protect themselves from too high oscillations
in exchange rates.
These changes were endorsed by all deputies, but some of them
objected to the fact that the explanation accompanying the bill,
apart from the first stage - liberalisation of the foreign currency
system - also included three other stages whose ultimate result was
the replacement of the kuna with the euro.
The lower house tonight also completed a debate on a bill on the HNB
which strengthens the independence of the central bank and changes
its objectives. According to the bill, the main objective of the HNB
would no longer be the maintaining of a stable kuna rate but the
stability of prices. The bill also forbids the central bank to issue
credits to the state.
Most deputies estimated that the bill was modern and adjusted to
European standards but some wondered if HNB's goals had not been set
too high given the underdeveloped financial market in Croatia.
Zlatko Matesa of the Croatian Democratic Union (HDZ) was most
critical toward the bill. He assessed that since under the bill the
central bank no longer answered to parliament the bill actually
introduced the HNB as the country's fourth authority.
The HNB would no longer even have to submit its financial plan to the
parliament, he said. Matesa also believes that the election of HNB
Council members and election criteria have not been regulated
adequately.
In his closing speech, HNB Governor Zeljko Rohatinski said one
should emphasise the responsibility of the HNB, the governor and
the HNB Council toward the parliament, however, the central bank
had to enjoy full operative independence.
The lower house resumed its session with a debate on the final bill
on defence.
(hina) rml