UNIONISTS, IMF OFFICIALS AGREE FOREIGN DEBTS CROATIA'S BIGGEST PROBLEM

ZAGREB, April 20 (Hina) - Representatives of union federations and the International Monetary Fund (IMF) said after talks on Tuesday that Croatia's foreign debt was the biggest problem and that measures, aimed at preventing its further increase must be taken.#L# The head of the IMF Mission in Croatia, Dimitri Demekas, who arrived in Zagreb a week ago to start negotiating with the government on a new stand-by deal, said after the talks that he was encouraged because consent was reach on most important issues. Foreign debt is the biggest problem and its growing must be stopped because it had already reached a level which could jeopardise the country's economy, Demekas said and added that the state budget was the most important instrument for reducing the foreign debt. The IMF Mission will not make any decisions on how to reduce the debt, this is up to the Croatian government, Demekas said and added the Mission would return to Croatia in May to give the government instructions which it could but didn't have to follow. The IMF union federation representatives also agreed it was necessary to streamline the state and local government. Union leaders told IMF representatives that any further cuts in salaries or restriction of labour rights were unacceptable for them. (Hina) it