IMF EXECUTIVE DIRECTOR ON VISIT TO CROATIA

ZAGREB, May 14 (Hina) - The executive director of the International Monetary Fund (IMF) and head of an IMF constituent group which includes Croatia, Johannes de Beaufort Wijnholds, on Friday started his visit to Croatia, where he is to stay several days. The first meeting the IMF official held in Zagreb today was the one with the leading Croatian National Bank (HNB) officials, headed by Governor Marko Skreb. The HNB delegation informed their guest about the latest economic and financial developments in the country, measures which are being taken to preserve the macroeconomic stability and the latest events in the banking sector, as well as about decisions of the central bank aimed at speeding up the consolidation and adjustment of the banking sector to the market principles of healthy banking. Speaking about the imminent talks on the signing of a new stand-by arrangement with the IMF, HNB Governor Skreb said the agreement would be important not only because the expected sum would strengthen the country's foreign currency reserves but because it would strengthen the reputation of the central monetary authorities. The agreement with the IMF is also important as a precondition for further cooperation with the World Bank and as a positive credit rating sign to foreign investors and agencies. The IMF official informed the Croatian delegation about IMF's latest guidelines, priorities and stands regarding the economic and financial policies of countries seeking IMF's support and funds, as well as about the ongoing talks on possible forms of assistance to countries which are most affected by the Kosovo crisis. (hina) rml