ZAGREB, April 13 (Hina) - Croatia's Government on Thursday defined measures for settling debts of budgetary users and extra-budgetary funds, established at the date of 31 December 1999 and which total some 9.5 billion kuna
(approximately 1.18 billion US dollars). This year's state budget will pay off 3.6 billion kuna ($0.45 billion).
ZAGREB, April 13 (Hina) - Croatia's Government on Thursday defined
measures for settling debts of budgetary users and extra-budgetary
funds, established at the date of 31 December 1999 and which total
some 9.5 billion kuna (approximately 1.18 billion US dollars).
This year's state budget will pay off 3.6 billion kuna ($0.45
billion).#L#
The Government will issue bonds valued 1.7 billion kuna (some $0.2
billion) to solve problems in public health. A part of debts will be
settled through clearance and issuing of another bonds coming to
1.58 billion kuna (about $0.2 billion).
The Government intends to solve problems of the insured savings and
this year it is to earmark 420 million kuna ($52.5 million) from the
budget, out of a total 2.4 billion kuna ($0.3 billion) in this
section. The rest of 1.98 billion kuna ($0.25 billion) will be
covered by a special arrangement which will soon be defined.
Proposals for the settlement of debts of budgetary users and extra-
budgetary funds were assessed as the Government's most significant
document this year following its programme.
Thursday's decision made it possible for outstanding debts (for
years in arrears) to be paid off in a short period. This helps build
confidence of depositors, stabilise the banking system and partly
solve the problem of illiquidity, Finance Minister Mato Crkvenac
said.
He added that out of planned 3.6 billion for the settlement this
year, 1.1 billion kuna were already paid in cash. In addition, this
and next month another 900 million will be paid also in cash. The
rest of 1.6 billion ($0.2 billion) will be discharged with bills
with maturity during this year.
(hina) mm ms