ZAGREB, June 15 (Hina) - The Croatian Government and responsible ministries are considering a draft Letter of Intent on the stand-by arrangement with the International Monetary Fund (IMF). The major stumbling block is still salaries
in the public sector, said the IMF permanent representative in Croatia, Gary O'Callaghan, at Tuesday's news conference. The IMF is expecting the response from the Croatian Government, he added. O'Callaghan said nothing had been changed since the recent visit of the head of the IMF mission to Croatia, Hans M. Flickenschild, adding that he could not give details of Flickenschield's talks with Croatian officials. Croatia might conclude a new 18-year-long stand-by arrangement with the IMF this August, if everything proceeds as scheduled. The $200-million arrangement will be in effect by the end 2000, and it is intended to help implement the fi
ZAGREB, June 15 (Hina) - The Croatian Government and responsible
ministries are considering a draft Letter of Intent on the stand-by
arrangement with the International Monetary Fund (IMF).
The major stumbling block is still salaries in the public sector,
said the IMF permanent representative in Croatia, Gary
O'Callaghan, at Tuesday's news conference.
The IMF is expecting the response from the Croatian Government, he
added.
O'Callaghan said nothing had been changed since the recent visit of
the head of the IMF mission to Croatia, Hans M. Flickenschild,
adding that he could not give details of Flickenschield's talks
with Croatian officials.
Croatia might conclude a new 18-year-long stand-by arrangement
with the IMF this August, if everything proceeds as scheduled.
The $200-million arrangement will be in effect by the end 2000, and
it is intended to help implement the fiscal adjustment.
Main elements of the proposed contract start from the ensuring of
the macroeconomic stability, the re-building of confidence in the
banking system and the stability of prices and the currency
exchange rate. The basis of the programme is the fiscal adjustment
particularly of extra-budgetory funds - the Pension and Public
Health Funds.
(hina) jn ms