IMF MISSION TO SETTLE NEW 3-YEAR ARRANGEMENT WITH CROATIA IN DECEM

DECEM $ BER ZAGREB, Sept 23 (Hina) - The IMF Mission was impressed with the achievements of the Croatian economy in the past three years, mission chief Robert Feldman told a Zagreb news conference on Monday. "The experience of other countries shows that macroeconomic stability is one of the crucial prerequisites for stable growth, and the Croatian experience shows that growth and stability can go hand in hand," Feldman said. The IMF Mission was in Zagreb from 6 to 23 September within the scope of regular annual consultations with the member countries. The Mission was also to discuss details of a new three-year arrangement between Croatia and IMF but that task was postponed for the Mission's next visit in December. "Except for certain measures for improving the financial sector, there are no new requirements for Croatia to comply with as regards this arrangement," Feldman said. "Judging by economic indicators, Croatia will achieve a 5- to 7-percent growth this year," he said. "In order to achieve a stable economic growth, Croatia needs to maintain inflation at a one-digit level, about 3 percent, and not to allow the budget deficit to exceed 3 percent of GNP," Feldman said, among other things. He also stressed the importance of structural reforms of the financial and banking sectors and an exchange rate policy that would ensure stable prices. (hina) as 231156 MET sep 96