PM: IMF ASSESSES IMPLEMENTATION OF GOVT ECONOMIC PROGRAMME AS GOOD

ZAGREB, Nov 6 (Hina) - The International Monetary Fund's executive committee has assessed the Croatian government's economic programme and the process of its implementation as good, Prime Minister Ivica Racan said on Tuesday. The IMF executive committee yesterday considered a report on the implementation of the government's economic programme and voiced a positive opinion about the programme and the implementation process, Racan told reporters. There were some misunderstandings concerning the report and its evaluation due to certain problems in the implementation of the government's programme and differences between Croatia and the IMF, such as the issue of an 800 million kuna loss of the Croatian Postal Bank, Racan said. The IMF demanded that the loss be entered in the bank's balance sheet or the budget, while the Croatian side suggested that it be transferred to the Croatian Privatisation Fund, he said. Reiterating that the report and its evaluation were positive, Racan said this meant Croatia's stand-by arrangement with the IMF was being realised as planned and that one could expect financial support from international financial institutions for a number of projects. This included a World Bank structural adjustment loan, worth around 200 million USD for the development of small and medium businesses, the continuation of an enterprise and financial adjustment loan (EFSAL) worth some 80 million dollars, intended for structural changes in the industry, a USD150-million worth World Bank programme for roads and the port of Rijeka port and a number of other programmes, he said. This would indirectly improve Croatia's rating on the financial market, the Prime Minister asserted. (hina) rml