ZAGREB, Jan 25 (Hina) - The World bank will grant a 200 million dollar loan to Croatia this spring, intended for the structural adjustment of the Croatian economy, World Bank director for Croatia, Andrew Vorkink, said Thursday. The
loan will be granted to Croatia at the best possible time, at the beginning of the year 2001 which is crucial for the success of the government's programme of recovery and growth, Croatian Finance Minister Mato Crkvenac told a joint news conference held after a two-day working visit of the World Bank mission to Croatia. The loan has this intent because experience has shown that reforms of national economies do not succeed if the task is being done separately in economic sectors, Vorkink explained. He asserted the government cannot bear responsibility for the implementation of the reforms nor implement them alone without the participation of its social p
ZAGREB, Jan 25 (Hina) - The World bank will grant a 200 million
dollar loan to Croatia this spring, intended for the structural
adjustment of the Croatian economy, World Bank director for
Croatia, Andrew Vorkink, said Thursday.
The loan will be granted to Croatia at the best possible time, at the
beginning of the year 2001 which is crucial for the success of the
government's programme of recovery and growth, Croatian Finance
Minister Mato Crkvenac told a joint news conference held after a
two-day working visit of the World Bank mission to Croatia.
The loan has this intent because experience has shown that reforms
of national economies do not succeed if the task is being done
separately in economic sectors, Vorkink explained. He asserted the
government cannot bear responsibility for the implementation of
the reforms nor implement them alone without the participation of
its social partners -- employers and unions, and the entire
population which is expected to change its mentality by which the
state is always required to solve problems.
The World Bank expects of Croatia to accept the challenge of annual
economic growth of at least four per cent.
If Croatia does not begin an accelerated economic growth, it will
lag behind surrounding countries even more, and unemployment will
increase, Vorkink said.
It is very important, he added, that Croatia begin with the reforms
immediately. However, a decrease of unemployment should not be
expected to happen at the start but in two to four years.
"After last year which was a year of consolidation and creation of
macroeconomic predispositions of economic long-term stability,
the year 2001 is a year of speedy reforms, economic development and
the start of solving the problem of unemployment," Minister
Crkvenac said.
He said the government was working "very systematically" on a
programme of expedited employment which will soon be presented to
the public.
Asked whether the government would correct its conservative
projections of the economic growth rate, considering expectations
of the World Bank, Crkvenac said the government will continue to be
realistic with regards to possible growth rates. This year, the
rate of growth will be about four per cent, and the next several
years must exceed five per cent, he asserted.
(hina) lml