ZAGREB, Oct 18 (Hina) - The World Bank's mission in charge of negotiations for the Structural Adjustment Loans (SAL) programme, led by Ilker Domac, on Wednesday toured the Croatian National Bank (HNB) and held talks with the HNB
Deputy Governor Boris Vujcic.
ZAGREB, Oct 18 (Hina) - The World Bank's mission in charge of
negotiations for the Structural Adjustment Loans (SAL) programme,
led by Ilker Domac, on Wednesday toured the Croatian National Bank
(HNB) and held talks with the HNB Deputy Governor Boris Vujcic.#L#
According to the mission's head, a goal of their visit is to get an
insight in the most important economic indicators and measures of
economic and monetary policy so that the World Bank can prepare loan
arrangements to supplement the arrangement between Zagreb and the
International Monetary Fund (IMF), on which negotiations should
ensue in the end of this month.
The intention of the mission is to support reforms the Croatian
Government is taking in order to enhance the efficiency and
competitiveness of the country's economy, read a statement
released by the central bank.
The SAL programme should facilitate social components in the
structural reforms and help promote the labour market.
According to the Deputy Governor, one of the most significant
features in this year's economic developments in Croatia is that
economic activities are being revived with an increase in export,
following stagnation in recent years. The rise in exports is likely
to continue.
The current deficit on the balance of payment this year is to be
about one billion US dollars, i.e. its share in the Gross Domestic
Product will be by two percent points lower as against last year.
The exchange rate remains stable, and the banking system has been
stabilised.
Banks' loan programmes has stagnated for some time, but this
business activities will probably revive.
Prices in September rose more than usual, owing mostly to causes
beyond the monetary policy, and the central bank is carefully
following developments in that field in order to be prepared to take
adequate measures, if necessary.
According to Vujcic, a high unemployment rate is still the most
sensitive problem in the country.
The most important preconditions for reversing the jobless rate are
political and macroeconomic stability and legal safety. This will
be of key importance for the competitiveness of the Croatian
economy and for a speedier rise in foreign investments, read the
statement.
(hina) ms