GRANIC'S AIDE ADDRESSES SESSION OF EUROPEAN ECONOMIC COMMISSION

GENEVA, 15 April (Hina) - Aide to Croatian Foreign Minister Spomenka Cek said at today's session of the European Economic Commission in Geneva that Croatia expected its economic growth to reach the figure of 7% per year. That would improve the living standard to a certain extent, she added. #L# The Croatian Government intended to continue its stabilization program, Cek said, adding that the Government expected that its firm budget and monetary policy would diminish the annual inflation rate to some 3% in the near future. Investments should be prompted by maintaining an acceptable annual balance-of-payments deficit. Croatia had adopted a law on the liberal regime for foreign investments which included one of the lowest customs rates (25%) in Europe, and great incentives, Cek said. It would be possible to bring profit and capital out of Croatia and no limitations would be imposed on corporation investments in real estate either, Cek said. 'Last year's direct foreign investments amounted to 410 million German marks and largest investments were made by Austria and Germany, followed by Italy and Switzerland', she said. The growth of the private sector was the foundation of future reforms. The current share of the private sector in the gross domestic product was above 50% and its participation would continue to grow, Cek said. 'We hope to continue our talks with the European Union soon and we are convinced that lasting and strong economic bonds are of mutual interest. The establishment of closer relations with CEFTA member-states is our indirect goal. Our indirect aim on the territory of former Yugoslavia is the development of good relations and mutually useful cooperation', the aide to the Croatian foreign minister said. Cek called on all concerned to send their experts to an international symposium on water pollution and protection of agriculture which is to be held from 20 to 25 May in Zagreb. (hina) rm jn 151759 MET apr 96