RACAN:GOVT TO TAKE MEASURES TO COUNTER NEGATIVE IMPACT OF STRIKES

ZAGREB, Oct 8 (Hina) - Croatia's government is preparing economic measures to diminish the negative impact of the recent terrorist attacks in the United States and of the American response to those acts, Premier Ivica Racan said at Monday's regular news briefing. The government's competent departments have been entrusted with the task to establish economic and financial damage and adopt measures to alleviate the damage as soon as possible, PM added. He announced the government would soon discuss those issues. A part of the expected damage owing to the deteriorated financial situation and a world recession has already been incorporated in a draft revision of the state budget for this year, Racan said. He confirmed that the revised budget envisaged a deficit of one billion kuna (approximately 122 million US dollars) from the previously planned privatisation income, i.e., instead of 6.5 billion kuna, 5.5 billion ($670 million) would be obtained. This deficit is likely to be covered with internal loans, the PM explained. This year's economic growth will be 4.2 percent as planned, he said dismissing pessimistic forecasts about a fall in the economic growth next year. He insisted on his estimate that a motor-way between the Croatian capital and the biggest coastal city of Split would be constructed within next three years, and that it might be used as of 2004. The premier described some bids to contest this deadline as a typical example of a lukewarm response from the media and public to positive steps. He announced that the project for the Zagreb-Split highway would be discussed in detail at the government's session scheduled for Thursday in Split. His cabinet will also consider a decision about the financing of the project with three billion German marks. The premier said there were plans for intensified investments in the infrastructure, including roads, the railway network and the seaport of Rijeka, in the coming years. (hina) ms