CROATIAN FINANCE MINISTRY ISSUES STATEMENT

ZAGREB, June 12 (Hina) - The Croatian Finance Ministry on Thursday denied allegations by some international media and officials that credit allocation by international financial institutions to Croatia was politically conditioned. "The positive results of programmes of domestic economic and financial stabilization, started by the Republic of Croatia, and subsequently supported by international partner financial institutions (International Monetary Fund, World Bank, European Bank for Reconstruction and Development), have contributed to a greater trust in the Republic of Croatia and its economic and financial factors in cooperating with the world. Significant pre-conditions have been created and the doors opened to a successful business linking of domestic with international subjects in line with mutual interest", the statement said. "Lately however, in some instances incorrect information has appeared in foreign media and statements by some high officials, while the allocation of certain credits to beneficiaries in the Republic of Croatia has distortedly been linked with political events", the statement further said. On 9 June 1997, the International Financial Corporation (a World Bank affiliation, in which the U.S. has majority part-ownership) allocated a 20 million-German mark credit for a new investment into the "T.C. Koromacno" private company, mainly in foreign ownership. In assessing the justifiability of this private investment, the principal motive was, according to the statement, a "good and successful private company, a profitable investment in the Republic of Croatia, which has created a very successful macroeconomic stability programme after the disintegration of the former Yugoslavia, and where the three percent inflation is lower than elsewhere in Europe." Croatia has supported this private investment and wishes a successful development of cooperation with the IFC. The allocation of such credits is not conditioned either by political criteria or by imposing some non-economic conditions, the statement said. These institutions have frequently cited Croatia as an example of a stable and successful country, which also reflects on the increase of private investments into its economy, the statement by the Croatian Finance Ministry concluded. (hina) ha jn 122130 MET jun 97