CROATIA TO RECEIVE 200 MILLION DOLLARS FOR EMPLOYMENT STIMULATION

WASHINGTON, April 30 (Hina) - Croatia is expecting a 200 million dollar loan from the World Bank, intended for employment stimulation, particularly in small and middle-scale companies, Croatian Finance Minister Mato Crkvenac and his associates said in Washington Monday. The loan, part of a group of so-called social adjustment loans, should be drawn in two rates by US$100 million each, with one part being granted in November and the other in the middle of next year. Croatia was not set any conditions which would stand out from the government's economy policy measures, Crkvenac said. "Croatia cannot have a social situation as Sweden," he said, adding certain flexibility should be set in Croatia when it comes to the labour market. Croatian National Bank (HNB) deputy governor Boris Vujcic said International Monetary Fund representatives expressed satisfaction that the net domestic assets and reserves of the HNB exceed the criteria agreed on by stand-by arrangement. "There is no reason for this to be so in the second trimester as well, and in July, the IMF Mission will again visit Croatia to set criteria for the second half of the year," Vujcic said. It has been confirmed Croatia would not have to be withdrawing funds from the stand-by arrangement. "All indicators from the first trimester confirm the government's successful carrying out of the economy policy," Crkvenac said. Economic growth was 3.7 percent. IMF and World Bank experts believe that the economic growth in Croatia could be four percent this year, which is above the expected European average. Reserves are diminishing and exports are increasing. After almost two years of a standstill, construction has been activated, we will certainly have a record year in tourism, and trade is functioning normally, the minister stated. "Foreign exchange balance of payments is no longer a threat to the macroeconomic stability of the country," Vujcic stressed. (hina) lml