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PRIME MINISTER VALENTIC ON CROATIA'S FOREIGN EXCHANGE RESERVES

ZAGREB, Aug 1 (Hina) - The National Bank of Croatia (NBH) on Monday posted USD one billion of hard currency reserves, bringing Croatia's foreign exchange reserves to a total of USD one billion and 850 million. Prime Minister Nikica Valentic told a press conference at the NBH today that total foreign exchange reserves would reach USD 2.5 billion by the end of the year. Valentic went on to say that the Government would not allow a recurrence of inflation and that the stability of the kuna would remain a priority in the economy policy. The Prime Minister noted that the process of economic restructuring was under way but that it met with resistance. "We know about strikes and protest rallies ... that have been announced, but it should be clear that the Government will be no commission for rehabilitation of companies' debts," he said. The production can be revived with further strengthening of the domestic currency, reduction of spending and customs, and stimulating of import, Valentic stressed. (hina) mm vm 011748 MET aug 94

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