KUNA EXCHANGE RATE SLIDING DECELERATED

ZAGREB, Mar 3 (Hina) - The Croatian National Bank (HNB) on Wednesday said in a statement the HNB Council discussed the latest economic and monetary trends. Data on industrial production and some other sectors, as well as unemployment indicators, point to a further deceleration of economic activity. No statistical data is yet available on the movement of prices in February, but no considerable growth is expected, the statement said. Kuna's rate in February has decreased in value by 2.4 percent in relation to the German mark, and six percent in relation to the U.S. dollar. According to the HNB Council, this indicates that HNB's measures in February, which included foreign sales of EUR156 million and US$7 million, decelerated, but did not stop a sliding exchange rate. Very significant in this respect will be the revenue from euro bond sales, aimed at an easier maintenance of a satisfactory kuna rate until major foreign exchange earnings expected in the summer tourist season. Favourable indicators at the beginning of the year have been registered in the foreign exchange of commodities: export in January was 10.3 percent higher in dollar terms, and import 5.3 percent lower than in January 1998. (hina) ha mm