CRO ECONOMY MINISTER PRESENTS CROATIA'S ECONOMY AT CEI SEF

ZAGREB, Nov 19 (Hina) - In 1999, Croatia expects a budgetary deficit and stable currency rate. Foreign exchange reserves are U$5.2 billion, which draws Croatia closer to a fairly low amount of foreign debt of about seven billion dollars, Croatian Economy Minister Nenad Porges said on Thursday, presenting Croatia's economy at the first Central European Initiative Summit Economic Forum (CEI SEF) in Zagreb. Over the following two days, every CEI member-country will have the opportunity to present its economic potential and investment portfolio. Croatia's strategy for resolving structural problems in 1999 will combine monetary measures and economic policy to spur production and export, and will include measures for budget revision and a decrease in public consumption, Porges said. The three main goals of Croatia's economic policy are the signing of free trade agreements with countries of central and eastern Europe, development of credit possibilities and export insurance, and strengthening of the programme for promoting export, he said. Although Croatia has achieved significant macro-economic results, certain weaknesses still exist, Porges said. This primarily pertains to a trade deficit which amounted to US$4.9 billion in 1997, or 25 per cent of the Gross Domestic Product. On the other hand, payment deficit reached US$2.4 billion last year, or 12.6 per cent of the GDP. Porges estimated that because of Government measures, the money transfer deficit will reach seven to eight per cent of the GDP this year. (hina) lml jn /sp