CENTRAL BANK OFFICIAL: THIS YEAR'S ECONOMIC GROWTH TO EXCEED 3.2 %

ZAGREB, Dec 8 (Hina) - A 3.2 percent economic growth is expected this year, but it is still not a robust growth and shows no indication of acceleration, Croatian People's Bank (HNB) vice governor Relja Martic told parliament on Friday. The successful summer tourist season, the growth in export, industrial production and citizens' spending will exceed the expected 2.8 percent in this year's Gross Domestic Product, he said presenting to the House of Representatives HNB's report on this year's economic trends. The principal economic aspects of this year are economic recovery, prices maintained at an acceptable level, and stability of the national currency, said Martic. He added the banking sector had also stabilised, and that citizens' trust in banks was coming back, as indicated by a strong growth in foreign and domestic currency deposits. This year's deposits rose by 35 and the money supply by 20 percent. Bank loans to companies and citizens, however, did not record as strong a growth. This was the issue pointed to by most MPs during debate. Ivan Suker of the opposition's Croatian Democratic Union said HNB interest rates on banks' reserves should be reduced or eliminated to urge banks to market conduct. Said rate, alongside high interest rates on HNB's treasury bonds and state securities represent safe placements for banks, while loans to the economy are unsafe, he said. Due to lack of quorum, voting on the HNB report will be done next week. (hina) ha jn