US1 BILLION OF DEBTS TO BE SETTLED BY END OF YEAR -- FINANCE MINISTER

ZAGREB, Oct 25 (Hina) - Secured savings in bankrupt banks, amounting to 8.7 billion kuna (about US$1 billion) could be settled by the end of the year, Croatian Finance Minister Mato Crkvenac told members of the Parliament's House of Representatives during question time Wednesday. In reply to MP questions, Crkvenac said a model had been developed to see the savings paid out by the end of the year. Secured savings were a part of inherited debts of the former government, totalling 9.5 billion kuna. By the end of the year 8.7 billion kuna of these debts will be paid back. Asked about the government's lack of a strategy, a comprehensive programme of economy development, vice premier Slavko Linic recalled the government had drawn up a programme adopted by the Parliament, and there was no need for a special strategy. Prime Minister Ivica Racan added the government was working on a strategy of Croatia's development, involving many experts from various fields. Together with the draft budget for next year, the government will motion the strategic framework for the development of the economy, Racan said. Linic holds that an accelerated privatisation process, solving problems of the government portfolio, and a fiscal policy directed towards unburdening the economy and stimulating investors were measures by which the government was executing its programme, its main goal being preventing the state from meddling in the economy. Asked by Dino Debeljuh of the Istrian Democratic Assembly (IDS) why there were conflicts between companies owned by the state, such as between Croatian railways and the INA oil company, Linic said the issue was the responsibility of managements. The government's decision was that managements must sit down at a joint table and agree on means of payment of old debts -- either through their rescheduling or cancelling. However, all new deliveries, Linic stressed, must be paid to avoid new conflicts. The irresponsible management at the Croatian Railways (HZ) refused to pay INA for new fuel deliveries, which is the reason INA refused to continue supply to the HZ. The management was replaced and the new management signed a deal with the oil company on paying new deliveries, while the problem of old debts will be settled within the next 30 days, Linic said. Asked what was being done to prevent malversation in the system of stimulation in agriculture, Agriculture Minister Bozidar Pankretic said the current system was not being applied, and a reform was being prepared to get the stimulation directly to farmers. Asked about an increase of white-collar crime this year, Interior Minister Sime Lucin replied the acts of crime had been committed before, not this year. The statistical increase of white-collar crime is a consequence of a large number of charges filed this year, as well as of the greater efficiency of police. Asked about a 25 per cent contribution on salaries of medical personnel in areas of special government care, Health Minister Ana Slavljenic Rukavina said the former government had in mid-1998 cancelled the benefit. In this year's budget, the new government had included funds for the payment of the benefits, but only for this year. There is no money for debts from mid-1998 to the beginning of this year, she said. (hina) lml