ZAGREB, Oct 27 (Hina) - A mission of the International Monetary Fund (IMF) headed by Hans Flickenschild is visiting Croatia for negotiations on new financial arrangement and on Friday held its first official talks with the leadership
of the Croatian National Bank (HNB), headed by governor Zeljko Rohatinski. The main subjects of the talks were the most recent economic and financial indicators, as well as changes in the monetary policy. IMF Mission chief said the Fund's assessments about this year's economic growth and basic balance of payments indicators in Croatia did not stray much from those of the Croatian National Bank. According to the most recent assessments, relayed by the HNB governor, the gradual breathing life into economic activities will result in this year's growth of the gross domestic product by about 3.5 per cent, an improved balance in the exchange of goods and services with other countr
ZAGREB, Oct 27 (Hina) - A mission of the International Monetary Fund
(IMF) headed by Hans Flickenschild is visiting Croatia for
negotiations on new financial arrangement and on Friday held its
first official talks with the leadership of the Croatian National
Bank (HNB), headed by governor Zeljko Rohatinski.
The main subjects of the talks were the most recent economic and
financial indicators, as well as changes in the monetary policy.
IMF Mission chief said the Fund's assessments about this year's
economic growth and basic balance of payments indicators in Croatia
did not stray much from those of the Croatian National Bank.
According to the most recent assessments, relayed by the HNB
governor, the gradual breathing life into economic activities will
result in this year's growth of the gross domestic product by about
3.5 per cent, an improved balance in the exchange of goods and
services with other countries, and a decrease in the deficit of the
balance of payment current account from last year's 7.5 per cent to
this year's 5.5 per cent part in the GDP.
The exchange rate is stable and without intervention by the central
bank on the foreign exchange market.
A 6.6 per cent increase in prices during the first nine months of
this year in greater than in previous years, but Croatia's central
bank estimates inflation was under control, and is prepared to
undertake all available monetary policy measures should data for
October point to a revival of inflation expectations.
The IMF delegation was interested in the instruments the HNB was
prepared to use in such a case. The key problems were fiscal
adjustments and a decrease in the budgetary deficit which is
assessed at about 6 per cent of the GDP without privatisation
turnover, (according to previous IMF estimates, even more than
that).
According to Hans Flickenschild, the IMF Mission would focus its
attention to the three-year budget projection and necessary
structural adjustments in the public sector.
(hina) lml jn