ZAGREB, March 21 (Hina) - "If the Sabor adopts a budget of 48.3 billion kuna (about US$6.03 billion), we will absolutely support it because we have been insisting for several years that, from the aspect of macroeconomic policy, it is
important to limit public spending, Croatian National Bank (HNB) Governor Marko Skreb told Hina on Tuesday. A smaller budget and less budgetary debts will open new possibilities for the private sector, because the less loans the state takes from business banks, the more loans will be left for the private sector, Skreb said. He added that reducing tax burdens would also create space for a less strict monetary policy with lower interest rates and rates for setting aside obligatory reserves. The government's intention to return 3.6 billion kuna (US$0.45 billion), which is part of a debt incurred during the mandate of the former government, will also be very stimulati
ZAGREB, March 21 (Hina) - "If the Sabor adopts a budget of 48.3
billion kuna (about US$6.03 billion), we will absolutely support it
because we have been insisting for several years that, from the
aspect of macroeconomic policy, it is important to limit public
spending, Croatian National Bank (HNB) Governor Marko Skreb told
Hina on Tuesday.
A smaller budget and less budgetary debts will open new
possibilities for the private sector, because the less loans the
state takes from business banks, the more loans will be left for the
private sector, Skreb said. He added that reducing tax burdens
would also create space for a less strict monetary policy with lower
interest rates and rates for setting aside obligatory reserves.
The government's intention to return 3.6 billion kuna (US$0.45
billion), which is part of a debt incurred during the mandate of the
former government, will also be very stimulating for economy,
because, according to Skreb, if the state's indebtedness reduces,
it will certainly have a positive effect on liquidity.
Asked whether he expected that a wave of bankruptcy proceedings
could jeopardise the stability of the banking system, considering
that many banks could be left without their claims, Skreb said this
should not happen.
The HNB Governor also positively assessed the current trend of
mergers in the Croatian banking system.
(hina) mm rml