IMF TO CONSIDER CROATIA'S THREE-YEAR ECONOMIC PROGRAMME

ZAGREB, Dec 17 (Hina) - A three-year economic programme by the Croatian government will be considered by the International Monetary Fund (IMF) board of directors, after which Croatia is expected to sign a letter of intent and a memorandum on economic policy, IMF mission chief Robert Feldman said in Zagreb on Tuesday. The IMF executive committee would discuss a request for a three-year expanded programme in late February or early March, he told a news conference. Such an arrangement would ensure support for this economic programme in the 1997-1999 period, Feldman said, adding that financial support would be provided after the signing of the three- year agreement. In response to a journalist's question, Feldman said that financial aid would include USD 450-500 million which would be paid over a three-year period provided that the IMF management approved the deal, he said. Describing the talks with the Croatian team of economic experts as very productive, Feldman said that they discussed the three-year economic programme based on stable macroeconomic frameworks and comprehensive structural measures. This would include other important government measures such as the rehabilitation of Privredna Banka Zagreb, the Privatization Act, and auctions of government securities, he added. Feldman said that the economic programme involved intensive privatization and further restructuring of companies, and that the IMF would certainly welcome all other measures in that direction. The talks with Croatian representatives also focused on the state budget draft. Feldman expressed satisfaction that the budget would limit a consolidated budget deficit to less than three percent of the gross domestic product. (hina) vm jn 171648 MET dec 96