HNB ADVISORY BOARD INCREASES INTEREST RATES FOR REQUIRED RESERVES

RESERVES ( Editorial: --> 8448 ) ZAGREB, Oct 14 (Hina) - The Croatian National Bank (HNB) Advisory Board has warned Croatian business people and bankers to take care of the deteriorating situation in the global economy. At a session held in Zagreb on Wednesday, the Board advised banks and investors to be more cautious, since a considerable fall of the global economic growth was expected. It is of extreme importance to preserve microeconomic stability even under those deteriorating circumstances. Here, the fiscal policy and adequate adjustments in the public expenditure policy, should have an especially important role, the Board said. Expecting the lowering of positive interest rates in banks and savings banks, the Board adopted a decision on increasing the interest rates which the central bank pays to banks and savings banks for their required reserves, from the current 4.5 to 5.9 per cent. Considering the changed possibility of foreign borrowing, it was decided that some foreign loans should be freed from the obligation of depositing. (hina) jn rml 142234 MET oct 98