MOST OF CRO'S DEBTS WERE INHERITED FROM FORMER YUGOSLAVIA -MATESA

ZAGREB, March 17 (Hina) - Former prime minister and current MP at the Croatian National Parliament's House of Representatives, Zlatko Matesa, on Friday commented on the frequent mention of state guarantees the former government had granted for some companies and foreign debt, about which many from the current government speak as a tremendous burden for the budget. "I think none of the 18 billion kuna (US$2.25 billion) of state guarantees will have to be paid," Matesa said. He held the state was not too burdened by external debt. Out of the total US$9.1 billion, 5.5 billion are debts from the state in a narrow sense, and half of it is debt inherited from the former Yugoslavia, Matesa said. This means that since claiming independence, the state has become indebted for less than three billion dollars. Most of the foreign debt to be paid back this year -- 6.2 billion kuna (US$775 million) -- relates to debt to the London Club, debt from the former Yugoslavia, Matesa explained. The remainder of the foreign debt represents debts by various companies -- private companies and banks -- registered at the Croatian National Bank as Croatia's external debt. But this is not debt which the state has to pay back, he asserted. According to Matesa's assessments, the new Government had drawn up the government budget for this year fairly correctly. (hina) lml jn