WASHINGTON, Nov 7 (Hina) - Croatian government authorities will fulfil or even exceed envisaged economic goals for 2001 in economic growth, the level of inflation and foreign exchange reserves, chief deputy for the International
Monetary Fund's executive director, Anne Krueger, said in Washington on Wednesday. Krueger chaired this week's IMF executive board session during which it was estimated for the first time that Croatia was implementing its obligations from the 14-month stand-by arrangement worth USD254 million which it signed with the IMF in March. The Fund also assessed that the lesser inflow of foreign capital into Croatia had been replaced by an increase in domestic consumption, so domestic investments and the consumption by citizens were rising above expectations. The government's economic reform programme has contributed to the consolidation of the macroeconomic position, the IMF assessed.
WASHINGTON, Nov 7 (Hina) - Croatian government authorities will
fulfil or even exceed envisaged economic goals for 2001 in economic
growth, the level of inflation and foreign exchange reserves, chief
deputy for the International Monetary Fund's executive director,
Anne Krueger, said in Washington on Wednesday.
Krueger chaired this week's IMF executive board session during
which it was estimated for the first time that Croatia was
implementing its obligations from the 14-month stand-by
arrangement worth USD254 million which it signed with the IMF in
March.
The Fund also assessed that the lesser inflow of foreign capital
into Croatia had been replaced by an increase in domestic
consumption, so domestic investments and the consumption by
citizens were rising above expectations.
The government's economic reform programme has contributed to the
consolidation of the macroeconomic position, the IMF assessed.
The Croatian government also deserves commendation for the
significant reduction of salary expenditure, Krueger said.
The IMF also described as positive the changes in social welfare
compensations which would contribute to the fiscal strengthening
of the country.
The authorities have confirmed their resoluteness to decrease this
year's budgetary deficit, but the unfavourable market conditions
and tardiness in privatisation had forced them to change financial
plans, so the decrease of the state's debt will be slowed down, the
IMF executive committee assessed.
The Croatian National Bank was also commended for managing to
maintain the stability of prices and currency rate, as well as to
keep tight control over the country's liquidity.
Croatia will continue with structural reforms, including the
restructuring and privatisation of public companies and remaining
state-owned banks, which will contribute to economic efficiency
and growth, as well as fiscal consolidation, Krueger said.
(hina) lml