ZAGREB, Dec 22 (Hina) - The main tasks of the Croatian National Bank +(HNB) in 1999 include maintaining the stability of prices and of the +macroeconomic system and solving the problem of a lack of financial +discipline, HNB leading
officials told reporters in Zagreb on +Tuesday.+ The deficit of the current account balance will amount to some +US$1.5 billion (between seven and eight per cent of the Gross +Domestic Product), which is about four per cent lower than last +year. The growth rate in 1999 will be somewhat lower than expected +(about three per cent).+ Top HNB officials believe that major economic progress or direct +foreign investments cannot be expected in the first half of 1999 +either. This should change in the second half of the year, after the +successful tourist season, when considerable foreign investments, +such as in telecommunications and banking sectors, can be +expected.+
ZAGREB, Dec 22 (Hina) - The main tasks of the Croatian National Bank
(HNB) in 1999 include maintaining the stability of prices and of the
macroeconomic system and solving the problem of a lack of financial
discipline, HNB leading officials told reporters in Zagreb on
Tuesday.
The deficit of the current account balance will amount to some
US$1.5 billion (between seven and eight per cent of the Gross
Domestic Product), which is about four per cent lower than last
year. The growth rate in 1999 will be somewhat lower than expected
(about three per cent).
Top HNB officials believe that major economic progress or direct
foreign investments cannot be expected in the first half of 1999
either. This should change in the second half of the year, after the
successful tourist season, when considerable foreign investments,
such as in telecommunications and banking sectors, can be
expected.
Real economic growth will be sustained in the next year, the
stability of prices and the exchange rate will continue and the
deficit of the current account balance in relation to the GDP will
decrease.
HNB Governor Marko Skreb believes that solving the problem of a lack
of financial discipline and debtor's mentality will be of crucial
importance next year.
Transparency of market economy requires clear rules and clear
penalties for those who do not pay their obligations, Skreb
stressed.
The core of the Croatian banking, despite the problems in some
banks, is healthy, he assessed. According to HNB estimates,
problems exist in ten per cent of the whole banking system. HNB's
foreign currency reserves at the end of this year amount to about
US$2.7 billion.
(hina) jn rml