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FINANCE MINISTER: NO MAJOR MISUNDERSTANDINGS WITH IMF

ZAGREB, Nov 23 (Hina) - On the occasion of a two-week visit of the International Monetary Fund (IMF) mission to Croatia, Finance Minister Mato Crkvenac said on Friday talks were progressing "very well". They focus on the analysis and what has been achieved to date and the economic policy for 2002, without any significant misunderstandings. At a press conference, Crkvenac commented on a draft state budget for 2002, assessing that discussions held to date were good and that there were no bigger disputes. Answering to criticism made by the Croatian Democratic Union (HDZ), Crkvenac said the HDZ's proposal to increase contributions for health and pension insurance by four percent, the amount by which they were decreased last year, would be turned down, as it would reduce the price of labour, and consequently decrease salaries. Similarly, there will be no return of Value Added Tax on organised tourist arrivals, because the
ZAGREB, Nov 23 (Hina) - On the occasion of a two-week visit of the International Monetary Fund (IMF) mission to Croatia, Finance Minister Mato Crkvenac said on Friday talks were progressing "very well". They focus on the analysis and what has been achieved to date and the economic policy for 2002, without any significant misunderstandings. At a press conference, Crkvenac commented on a draft state budget for 2002, assessing that discussions held to date were good and that there were no bigger disputes. Answering to criticism made by the Croatian Democratic Union (HDZ), Crkvenac said the HDZ's proposal to increase contributions for health and pension insurance by four percent, the amount by which they were decreased last year, would be turned down, as it would reduce the price of labour, and consequently decrease salaries. Similarly, there will be no return of Value Added Tax on organised tourist arrivals, because the government is aiming to gradually decrease VAT, Crkvenac said. Commenting on two new funds - for employment and development, and regional development - the minister said they were under the government's control, while the parliament formulated their programme. After the adoption of the budget, a bid for tenders worth 560 million kuna (USD66.7 million) will be invited. The two funds will manage the money, making it available to municipalities, towns, counties, and various projects. (hina) np sb

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