PREMIER: GOVT STILL UNFAMILIAR WITH REAL AMOUNT OF CROATIA'S DEBT

ZAGREB, Feb 29 (Hina) - Croatian Premier Ivica Racan on Tuesday said the government still did not know the real amount of Croatia's debt, and that it would not be able to state the exact sum even when passing a state budget for this year. "At this moment we are still unable to get the whole picture of all the bad debts and losses we have to put up with," said the premier addressing a session of the Social Democratic Party's Zagreb Committee, which he chairs. He accused the past Croatian Democratic Union-led government of leaving the coalition which won January's parliamentary elections with a disastrous economic and social situation. The government last week put forward a draft budget in the amount of 45.6 billion kuna (US$5.7 billion), but postponed finalising it due to some ministers' dissatisfaction with a proposed distribution of funds. Racan said today members of the government were fighting a tough battle to have all existing losses openly stated in the budget and "cleared out as much as possible already this year." The premier appealed to all employees to show humility and be realistic in demanding higher salaries. State officials have cut their own salaries by 40, and not only between 20 and 30 percent as was estimated in the media, he asserted. Racan confirmed announcements that more jobs would be lost this year, but pointed out the government intended to simultaneously work out programmes providing new jobs. The government will not finance companies with no prospects on the market, he said. "We do not have the right to play with taxpayers' money, but it is our duty to direct it, alongside the foreign funds Croatia will receive, towards healthy, promising projects which offer progress and new jobs," the premier said. He added Croatia for the first time in years was realising a programme it had drawn up itself, and that the fact that it coincided with expectations of the international community was a lucky coincidence. (hina) ha jn