WASHINGTON, April 17 (Hina) - Croatian National Bank deputy governor Zdravko Rogic and the head of the International Monetary Fund (IMF) Mission to Croatia, Hans Flickenschield, are to resume talks on the signing of a new Croatia-IMF
stand-by arrangement in Washington on Tuesday. The arrangement envisages US$250 million Croatia would be granted at extremely favourable conditions and a low interest rate. Rogic, who is attending the IMF-World Bank spring sessions in Washington, is confident the arrangement could be signed by June. "Croatia's position at the moment is very good and no time should be lost," he asserted. Interest in a new stand-by arrangement is mutual. An IMF Mission, which had spent two weeks in Croatia, last week forwarded to the Croatian government a memorandum on conditions in connection with the signing of the arrangement. Rogic says claims that the IMF
WASHINGTON, April 17 (Hina) - Croatian National Bank deputy
governor Zdravko Rogic and the head of the International Monetary
Fund (IMF) Mission to Croatia, Hans Flickenschield, are to resume
talks on the signing of a new Croatia-IMF stand-by arrangement in
Washington on Tuesday.
The arrangement envisages US$250 million Croatia would be granted
at extremely favourable conditions and a low interest rate.
Rogic, who is attending the IMF-World Bank spring sessions in
Washington, is confident the arrangement could be signed by June.
"Croatia's position at the moment is very good and no time should be
lost," he asserted.
Interest in a new stand-by arrangement is mutual. An IMF Mission,
which had spent two weeks in Croatia, last week forwarded to the
Croatian government a memorandum on conditions in connection with
the signing of the arrangement.
Rogic says claims that the IMF Mission left Croatia dissatisfied
are unfounded. "Perhaps they had expected that we would be readier,
but there was no reason for dissatisfaction," he said.
Croatia's economic situation is very difficult and calls for a
programme of measures which will guarantee maximum protection for
macro-economic stability and ensure economic growth.
The latest indicators show that Croatia's fiscal deficit accounts
for eight percent of the Gross National Product (GNP), that the
central authorities through the state budget and public
expenditure spend half the GNP, while foreign debts are at a
critical level. Furthermore, salaries last year grew by an average
ten percent while the GNP was decreased.
Rogic says adequate fiscal policy measures are extremely
important, and should include cuts in budgetary expenditure and
salary control. Debts to pensioners are an especially sensitive
issue.
On the positive side, kuna's currency rate remains stable, the
expected economic growth for this year is between two and 2.5
percent, and the banking sector, of which 90 has been privatised, is
also stable.
Rogic says the stand-by arrangement would be a good indicator to
investors that Croatia's economic programme enjoys the trust of the
IMF and the World Bank. This is paramount because an economic
momentum in Croatia is unimaginable without foreign investments,
he added.
(hina) ha