MACROECONOMIC STABILITY STILL SATISFACTORY -- HNB

ZAGREB, June 30 (Hina) - Macroeconomic stability is still satisfactory, the Croatian National Bank Council said at Wednesday's session led by governor Marko Skreb. Prices have increased by 3.8 per cent in the past year. June is the fourth month in a row in which the kuna currency rate is between DM3.88 and 3.89. Liquidity in the banking system is good, the HNB said in a statement issued after the session. The financial marked noted a decrease in the average daily interest rate by 12 per cent. Average interest rate for total newly-granted loans of business banks dropped to 14.1 per cent. June is the second month in a row in which foreign exchange reserves in HNB's accounts register growth. Foreign exchange deposits have grown in June. Industrial production is showing signs of rehabilitation, but is still under last year's level in the first five months. Unemployment grew by 12.5 per cent in May in comparison to the same month last year. The amount of net salaries paid in April was 8.5 per cent nominally and 5.1 per cent realistically bigger than in the same month last year. According to information at hand, the deficit of the balance on current accounts is decreasing, and amounted to US$490 million in the first three months of this year, which is 26.9 per cent less than in the same period last year. The five-year stagnation in exports is currently an unfavourable indicator, especially in small and transitional economies such as in Croatia. Chances for overcoming this stagnation, according to the HNB Council, are tightly connected with Croatia's accession into appropriate international associations, which would most effectively spur direct foreign investments and an increase in exports, the HNB statement said. (hina) lml