ZAGREB, May 3 (Hina) - The first hundred days of the new government represent the first stage of its short-term activities, whereas in the second short-term stage the government will shape measures which will create conditions for
economic revival this year, Finance Minister Mato Crkvenac said on Wednesday at a round table on the government's economic policy, entitled "97 Days After and 365 Days Ahead." The event was held within the fifth Croatian Financial Forum. The government will soon present measures for the coming period, and those measures should enable us to in early 2001 enter a macroeconomic environment which will secure employment and economic revival, Crkvenac said. The Finance Ministry is preparing a state budget for the period 2001-2003, Crkvenac said, adding it was important for the government, employers and unions to agree on a social truce. He also announced mea
ZAGREB, May 3 (Hina) - The first hundred days of the new government
represent the first stage of its short-term activities, whereas in
the second short-term stage the government will shape measures
which will create conditions for economic revival this year,
Finance Minister Mato Crkvenac said on Wednesday at a round table on
the government's economic policy, entitled "97 Days After and 365
Days Ahead."
The event was held within the fifth Croatian Financial Forum.
The government will soon present measures for the coming period,
and those measures should enable us to in early 2001 enter a
macroeconomic environment which will secure employment and
economic revival, Crkvenac said.
The Finance Ministry is preparing a state budget for the period
2001-2003, Crkvenac said, adding it was important for the
government, employers and unions to agree on a social truce.
He also announced measures for resolving the problem of
illiquidity, export and investment incentives, fighting grey
economy and bureaucracy, as well as for supporting some 20-30
successful companies, which would promote small and medium-scale
businesses.
Zeljko Covic, president of the management board of Croatia's
leading pharmaceutical company 'Pliva', emphasised the importance
of a development strategy. Let us form a team of experts who will
contribute to Croatia's development with new forms of technology
and knowledge, Covic said.
Two foreign analysts, Andrew Kenningham and Michael Glazer, warned
about the need to make cuts in public spending and reform the health
and pension systems. They also warned about the inefficiency of the
judiciary and the problem of the Croatian National Bank, which,
Glazer believes, has so far been politicised to a certain extent.
Kenningham warned about the concern of markets over developments
regarding the central bank. Markets have a positive attitude toward
the HNB and the Governor and they fear that the replacement of the
bank's leadership could negatively affect the bank's independence,
Kenningham said.
The leading officials of the Zagrebacka, Privredna, and Raiffeisen
Banks, Franjo Lukovic, Bozo Prka and Zdenko Adrovic respectively,
warned that there were very few companies on the market with
acceptable credit risk rates and that companies were relying
exclusively on loans, whereas alternative forms of financing did
not exist.
They also warned of high interest rates, which, it was said, were
the result of the inability of a large number of companies to pay
loans, as well as of poor credit ratings of a whole range of
branches, such as agriculture and tourism.
Privredna Bank's Prka said the idea of one-off devaluation should
be rejected unambiguously, as the government had already done.
(hina) mm rml