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MATESA ANNOUNCES NEW FORM OF COOPERATION WITH IMF

ZAGREB, 14 Oct (Hina) - The Croatian Premier Zlatko Matesa on Tuesday stated he hoped that Croatia would soon establish a new form of cooperation with the International Monetary Fund (IMF). In his statement to reporters, Matesa gave an additional explanation of why the Croatian government had decided not to use the subsequently granted second and third tranche from the so-called extended fund facility (EFF) arrangement with the IMF.
ZAGREB, 14 Oct (Hina) - The Croatian Premier Zlatko Matesa on Tuesday stated he hoped that Croatia would soon establish a new form of cooperation with the International Monetary Fund (IMF). In his statement to reporters, Matesa gave an additional explanation of why the Croatian government had decided not to use the subsequently granted second and third tranche from the so-called extended fund facility (EFF) arrangement with the IMF. #L# The character of Croatia's arrangement with the IMF envisages very precise deadlines and a monitoring process. According to Matesa, the deadlines had been disturbed due to a postponement, and the Government yesterday discussed the overall level of Croatia's liquidity in international payment operations, including its arrangement with the IMF and its purposefulness. He stressed that the assets given by the IMF were being used only for maintaining the country's external liquidity. Since Croatia has had an excellent tourist season and foreign reserves have increased in the meantime, and since certain interest is charged for IMF assets, we have decided not to draw the loan, Matesa explained. He added that other countries in transition at Croatia's level of economic development did not have that kind of arrangement with the IMF anymore, but the so-called stuff monitoring process or consultations as envisaged in the IMF statute. Today, Croatia is economically ready for such a system, Matesa said, adding he hoped that the Governor of the Croatian National Bank, Marko Skreb, would soon meet with IMF head officials and agree on a new form of cooperation. Croatia has excellent relations with the IMF which have not been disturbed by anything, Matesa said, adding that Croatia's economic program was still supported by the IMF. "Croatia did not wait for 10 October, the day when the IMF management met, only because of the loan, but also because that day the IMF said that Croatia was realising the program," Matesa said. Asked to comment on recent requests and statements by some factors in the international community for postponing the loan to Croatia due to political issues, concerning, among other things, Croatia's cooperation with the Hague Tribunal, Matesa said those statements were very clumsy, but his position did not allow him to comment on them. (hina) rm 141605 MET oct 97

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