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FINANCE MINISTER ON PENSION PAYMENTS, NEGOTIATIONS WITH IMF

ZAGREB, April 19 (Hina) - Croatian Finance Minister Mato Crkvenac told reporters in Zagreb on Wednesday his ministry would effect payment to the Croatian Pension Insurance Fund tomorrow, so that all pensioners will get their pensions by the end of the week. Minister Crkvenac also spoke about the course of negotiations with the International Monetary Fund (IMF), and projects the Finance Ministry is working on. Negotiations with the IMF on a new stand-by arrangement are proceeding in order, the minister said, adding a deadline for its completion had not been set. "We don't know when it will be signed, it will happen once (the arrangement) is ready, all issues settled. We are under no pressure to hastily sign some arrangement with anybody. We are on the best way to signing that agreement," said Crkvenac when asked about a date for the stand-by arrangement, in view of initial annou
ZAGREB, April 19 (Hina) - Croatian Finance Minister Mato Crkvenac told reporters in Zagreb on Wednesday his ministry would effect payment to the Croatian Pension Insurance Fund tomorrow, so that all pensioners will get their pensions by the end of the week. Minister Crkvenac also spoke about the course of negotiations with the International Monetary Fund (IMF), and projects the Finance Ministry is working on. Negotiations with the IMF on a new stand-by arrangement are proceeding in order, the minister said, adding a deadline for its completion had not been set. "We don't know when it will be signed, it will happen once (the arrangement) is ready, all issues settled. We are under no pressure to hastily sign some arrangement with anybody. We are on the best way to signing that agreement," said Crkvenac when asked about a date for the stand-by arrangement, in view of initial announcements that it would happen by the end of the summer, and the latest ones that it could happen towards year's end. After the first negotiating round, conducted from the end of March through mid-April, it was agreed that working consultations and talks with IMF representatives should continue, and that the IMF should come back to Zagreb in June for a second negotiating round. In the meantime, three IMF expert missions should stay in Croatia to help draft proposals. Crkvenac said talks with members of one of the missions were held today. Asked how demands from a parliamentary debate for the replacement of the Croatian National Bank's governor could affect negotiations with the IMF, Crkvenac said IMF's and other international financial institutions' experts pointed out they had found many competent people in Croatia. No one from the international institutions is personally linked with any of us, he stated. Crkvenac said the Finance Ministry was drafting a budget for the 2001-2003 year period. It will continue to be a saving-oriented budget, based on rationalisation and reform, which should be executed in conditions of economic growth ranging between four and six, or more, percent. The tax system will also be amended, in view of reducing the price of labour and encouraging employment. Deputy Finance Minister Damir Kustrak said more than half the amount of a total of 9.5 billion kuna of old government debts were planned to be settled by the middle of the year. (hina) ha jn

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