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FINANCE MINISTER: STATE WILL INCUR USD 1.01 BILLION DEBT NEXT YEAR

ZAGREB, Oct 24 (Hina) - Next year Croatia will incur a maximum debt of 8.5 billion kuna (approx. $1.01 billion), of which the majority, 6.5 billion, on the foreign capital market, Finance Minister Mato Crkvenac said on Wednesday.
ZAGREB, Oct 24 (Hina) - Next year Croatia will incur a maximum debt of 8.5 billion kuna (approx. $1.01 billion), of which the majority, 6.5 billion, on the foreign capital market, Finance Minister Mato Crkvenac said on Wednesday.#L# The foreign debt should cover immediate international liabilities which have to be paid next year. On the domestic market, the state will place approximately two billion kuna worth in securities in connection with the pension reform, the minister told a round table organised by the Croatian Association of Banks. After a recent placement of 1.5 billion kuna worth in bonds, the state plans on placing between 700 million and 1.5 billion more on the domestic market in November, for a seven-year period. Crkvenac told the bankers they could help the government's development-based orientation by supporting a more stable long- term development, namely by supporting new products and the conquering of new markets, and by supporting current production. The finance minister estimates next year's economic growth will reach 3.5 percent, but is expected to exceed that figure. The drafting of a state budget for 2002 is nearing completion, Crkvenac said, announcing a decrease of the budgetary deficit from 9.5 billion to 7.5-8 billion kuna. Speaking about the government's guidelines for next year, Crkvenac emphasised openness, competitiveness, stability and security. The government will pay special attention to employment, a more flexible labour market, and sustaining development by supporting export and reviving investments. ($1 = 8.4 kuna) (hina) ha sb

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