WASHINGTON/ZAGREB, March 20 (Hina) - The International Monetary Fund directors' committee on Monday gave the green light to a stand-by arrangement with Croatia, worth some 255 million US dollars.
WASHINGTON/ZAGREB, March 20 (Hina) - The International Monetary
Fund directors' committee on Monday gave the green light to a stand-
by arrangement with Croatia, worth some 255 million US dollars.#L#
"The Executive Board of the International Monetary Fund (IMF) today
approved a 14-month stand-by credit for SDR 200 million (about
US$255 million) for Croatia. The decision will enable Croatia to
draw SDR 40 million (about US$1 million) from the IMF immediately,"
read a statement released by the IMF in Washington.
On late Monday evening the Croatian government, the finance
ministry and the Croatian National Bank (HNB), issued a statement
confirming the information that Zagreb was given a stand-by
arrangement.
According to the statement, on 19 March the IMF Executive Board
concluded consultations with Croatia under Article IV of the IMF
Statute and gave the green light for the new stand-by arrangement.
Zagreb can draw the first instalment immediately. However, Croatia
is not intending now to draw granted means taking into
consideration a relatively high level of its foreign exchange
reserves, favourable prospects of its balance of sheet for this
year and good access to capital market, read the statement issued in
Zagreb.
Croatia will treat the arrangement as precautionary, i.e. there are
no plans for drawing the means, but they will taken if necessary.
For Croatia this agreement is very important as a token of the
international confirmation of the correctness of the country's
economic and financial policy which the incumbent government is
going to conduct in the forthcoming period.
The Ivica Racan Cabinet is paying special attention to cuts in the
public spending, the balance of the state budget and of the balance-
of-payment current transactions, structural adjustments and the
speedy approach to European integration processes.
This should be used as the basis for creating more jobs and for the
sound economic growth, the Zagreb statement added.
The said changes, the concluded arrangement with the IMF and
progress in bids to come closer to the European Union should
facilitate the enhancement of Croatia's credit rating.
The better credit rating, the more favourable conditions are for
being granted foreign loans or for attracting foreign investments,
the Zagreb statement added.
The above-mentioned orientation was outlined in the letter of
intent and a memorandum on economic policy which Zagreb forwarded
to the IMF in early February. The documents were signed by the
government top officials, Finance Minister and HNB Governor. Being
approved by the IMF Executive Board on Monday, they thereby became a
valid and internationally verified programme of the Croatian
executive and monetary authorities' activities.
The entire text of the said documents and IMF officials' assessment
of Croatia's programme and achievements are available to the public
on web sites of the Croatian central bank and the finance ministry.
(hina) ms