ZAGREB, July 21 (Hina) - An International Monetary Fund delegation held talks with the Croatian National Bank (HNB) Governor, Zeljko Rohatinski, and his aides, on Monday, within preparations for the conclusion of a news stand-by
arrangement between Croatia and this financial institution, the HNB said.
ZAGREB, July 21 (Hina) - An International Monetary Fund delegation
held talks with the Croatian National Bank (HNB) Governor, Zeljko
Rohatinski, and his aides, on Monday, within preparations for the
conclusion of a news stand-by arrangement between Croatia and this
financial institution, the HNB said.#L#
At the beginning of the meeting the IMF delegation's head Hans
Flickenschild said Croatia did not need a new stand-by arrangement
for usual reasons such as a lack of international reserves, the
undermined confidence in a financial system and so on. The new
arrangement between the IMF and Croatia is primarily important for
Zagreb as a sign of the IMF support to the entire economic policy and
the structural reforms in Croatia, he added.
The IMF officials were interested in prospects of the new
leadership of the central bank in continuing to conduct the
stabilisation-bound monetary policy and resist possible pro-
inflation pressure.
Governor Rohatinski reiterated the HNB leadership's firm
commitment to maintaining macroeconomic stability as a necessary
pre-requisite for the solid and viable economic growth, regardless
of the pressure it can expect to meet while performing its tasks.
According to the central bank's estimates, this year's rise in the
Gross Domestic Product (GDP) is likely to surpass the expected 2.6
percent. A deficit in the running account is expected to be 5-6
percent of the GDP, and this will be a more favourable result as
against previous years.
Latest indicators about a trend in prices have aggravated as
against the usual trends, but there are signs that this has been
temporary "deviation", owing to a rise in prices of petroleum
products and alterations in taxes rather than owing to the
acceleration of the inflation inertia.
A portion of the state expenditure in the GDP is likely to be reduced
to a certain extent this year.
The situation in the banking system has been improving
continuously, and an increase in the deposits shows that this is
also the opinion of bank clients.
(hina) mm ms