CROATIAN GOVT WILL HAVE TO CARRY OUT REVISION OF STATE BUDGET

LONDON, April 19 (Hina) - Due to the plummeting of economic activity, the Croatian Government will have to carry out a revision of the government budget this year, and the economy will most probably fall into recession, Croatian representatives said in London on Monday. A Croatian delegation headed by Finance Minister Borislav Skegro and Croatian National Bank governor Marko Skreb, are participating at this year's assembly of the European Bank for Reconstruction and Development. Asked by reporters about the Kosovo crisis, Skegro said Croatia does not border with Kosovo and the crisis in the Balkans will have no effect on Croatia. In relation to the German mark, Croatia's currency, kuna, has in the past several years proved it was stable, Skegro said. He added he saw no reason for this to change in the future. The Croatian Government has decided not to save banks in financial crisis, but to leave them in bankruptcy proceedings. Skreb told reporters Croatia would this year probably enter a recession, with a one per cent decrease in gross domestic product. In order to overcome problems, including possible losses in tourism, due to the NATO strikes on neighbouring Yugoslavia, which could amount to US$450 to 500 million, Croatia will ask the International Monetary Fund and the World Bank for a US$200 million loan, Skreb said. (hina) lml