SKEGRO & SKREB: GLOBAL FINANCIAL CRISIS WILL AFFECT CROATIA TOO

( Editorial: --> 6552 ) WASHINGTON, Oct 7 (Hina) - The effects of the international financial crisis, in the era of economic globalisation, will not bypass Croatia either, Croatian officials said in Washington on Wednesday. The Croatian delegates are attending the annual session of the World Bank and International Monetary Fund (IMF). Before the session's start, Croatian National Bank (HNB) Governor Marko Skreb and Finance Minister Borislav Skegro had a series of meetings with the representatives of investment banks and the heads of two international financial institutions. The meetings offered an opportunity for Croatian officials to ask that Croatia be considered separately, instead of in a wider context where other countries might act as an impulse against investment, as well as that it be assessed on the basis of its own potential, Skegro told reporters. Most of today's meetings focused on the global financial crisis. A decrease in exports to Europe and unwillingness of investors to invest into Croatia are the chief risks of the global financial crisis, Skreb said. "Large banks and investment funds are simply running away from all markets that are being formed", Skreb said. As regards Europe, Croatia's main export market, changes there could influence all other economic parameters, from investments, salaries to state expenditure, which all "need adjustment", Skreb said. "At this moment, probably in the next several months, it will be very difficult to get loans abroad", Skreb said. So far, Croatia has been able to refinance all immediate liabilities but the first problems have already been registered. "Mass adjustment will be necessary in Croatia", Skegro said. As regards the overall economic growth in the world, expectations have been reduced to half and this will reflect on Croatia as well, Croatian official believe. "There is so far no considerable slowing-down of economic growth", Skreb said while Skegro added that "it would be only logical to expect growth to be somewhat slower". (hina) jn rml 071823 MET oct 98