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NO REASON TO CHANGE CROATIA'S CREDIT RATING - STANDARD & POOR'S

LONDON, April 29 (Hina) - The world's leading credit rating agency Standard & Poor's believes that the Croatian Government is willing and has enough room for a turn in solving its economic problems, and that there was no reason to cancel Croatia's investment credit rating, agency's analyst for Croatia Konrad Reuss said in London on Thursday. Reuss told Hina that Standard & Poor's would not change Croatia's investment credit rating, BBB- (triple B minus), and expressed hope the Croatian Government would motion a supplement to the budget, which would place the budgetary expenditure on the level that would enable the realisation of a balanced budget. The International Monetary Fund will approve a stand-by loan of US$200 million to Croatia in June, and Croatia's solvency will not be threatened, Reuss told Hina. He stressed that his agency was satisfied with the way Croatia has
LONDON, April 29 (Hina) - The world's leading credit rating agency Standard & Poor's believes that the Croatian Government is willing and has enough room for a turn in solving its economic problems, and that there was no reason to cancel Croatia's investment credit rating, agency's analyst for Croatia Konrad Reuss said in London on Thursday. Reuss told Hina that Standard & Poor's would not change Croatia's investment credit rating, BBB- (triple B minus), and expressed hope the Croatian Government would motion a supplement to the budget, which would place the budgetary expenditure on the level that would enable the realisation of a balanced budget. The International Monetary Fund will approve a stand-by loan of US$200 million to Croatia in June, and Croatia's solvency will not be threatened, Reuss told Hina. He stressed that his agency was satisfied with the way Croatia has started to solve problems in its banking system. Reuss said that despite the uncertainty in the region caused by the Kosovo crisis, Standard & Poor's expected the Croatian Government to start the privatisation process of Croatian Telecommunications, which should result in earnings sufficient for maintaining solvency on the international market. Probable declining profits in tourism will cause an increase of deficit in the balance-of-payment current account, Reuss said. (hina) it jn/lml

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