STAND-BY ARRANGEMENT WITH IMF DEPENDS ON DECISIONS OF SABOR

ZAGREB, March 13 (Hina) - The Croatian parliament's House of Representatives on Tuesday afternoon resumes its 11th session at which it should decide on two laws which are rather important for the International Monetary Fund's decision whether to approve a stand-by arrangement with Zagreb. The lower house is to vote on a civil servants' salaries act which should enable a 10-percent cut in the entire financial means allocated from the state budget for that purpose. MPs will consider amendments to the law on Homeland War veterans' rights, under which their tariff benefits in the import of cars could be used only by 1 May. The said issues are two of four conditions set by the IMF, which should be met so that on 19 March the IMF Executive Committee can give the green light for the $250-million stand-by arrangement with Croatia. After yesterday's meeting of leaders of six parties which make up the ruling coalition, Prime Minister Ivica Racan said he was sure that a majority in the Sabor would vote for that package. PM Racan refuted allegations that the laws would be passed under the IMF pressure, explaining that his Cabinet launched a reform in the state administration on its own prior to the talks with the IMF. (hina) ms