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LOWER HOUSE: THERE WILL BE NO CHANGES TO AGREEMENT WITH UNIONS

ZAGREB, June 9 (Hina) - The Croatian Government has still not taken an official stand on a possible stand-by arrangement with the International Monetary Fund (IMF), Prime Minister Zlatko Matesa said on Wednesday during question time in the Croatian National Sabor's House of Representatives. However, Matesa believed the agreement with trade unions on the salary policy would not be changed. During the talks on stand-by arrangements, the IMF requested that there be no 17 per cent increase of salaries which are paid from the state budget, as envisaged by the collective agreement, but rather a 5-6 per cent rise of salaries. The trade unions of employees in public services did not accept the IMF's suggestion. Answering a question by an MP about this matter, Matesa said the proposed budgetary revision only envisaged a decrease of salaries of state officials. According to the existing conditions, the
ZAGREB, June 9 (Hina) - The Croatian Government has still not taken an official stand on a possible stand-by arrangement with the International Monetary Fund (IMF), Prime Minister Zlatko Matesa said on Wednesday during question time in the Croatian National Sabor's House of Representatives. However, Matesa believed the agreement with trade unions on the salary policy would not be changed. During the talks on stand-by arrangements, the IMF requested that there be no 17 per cent increase of salaries which are paid from the state budget, as envisaged by the collective agreement, but rather a 5-6 per cent rise of salaries. The trade unions of employees in public services did not accept the IMF's suggestion. Answering a question by an MP about this matter, Matesa said the proposed budgetary revision only envisaged a decrease of salaries of state officials. According to the existing conditions, the insured savings of depositors in banks which are undergoing bankruptcy procedures will be paid, Matesa said. The dynamics and methods of payment are being discussed, and they will not be to anyone's detriment, Matesa said. The Prime Minister said the Government was ready to inform the Sabor about investments in the reconstruction of the Croatian Danube River region. Many companies in the region have been financially reorganised but programmes are lacking, Matesa said answering a question by Djuro Perica (Croatian Democratic Union, HDZ). (hina) jn rml

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