ZAGREB, Dec 12 (Hina) - The Croatian government on Thursday adopted a draft memorandum on the country's economic and financial policies, whose content was agreed on with an International Monetary Fund (IMF) mission, and forwarded it
to parliament, which should discuss it at a special session next week.
ZAGREB, Dec 12 (Hina) - The Croatian government on Thursday adopted
a draft memorandum on the country's economic and financial
policies, whose content was agreed on with an International
Monetary Fund (IMF) mission, and forwarded it to parliament, which
should discuss it at a special session next week. #L#
The government is to decide about the new stand-by arrangement at
the beginning of next year. The arrangement should be discussed by
the IMF board of directors in early February next year.
The new arrangement, which Finance Minister Mato Crkvenac said was
not so restrictive as the previous one, would be valid until March
2004. It would put 140 million dollars at Croatia's disposal,
however Crkvenac said the funds would not be drawn.
He said that US$70 million worth of special drawing rights, used in
1994/97, were paid this morning.
Crkvenac stressed that the government's economic policy was
contained in the draft memorandum. This primarily refers to next
year's deficit, which under the adopted 2003 budget should not
exceed five percent of the Gross Domestic Product.
The new arrangement will not make Croatia lose independence in
development, Crkvenac said, adding that Croatia determined its
policy and development on its own.
Under the draft, the government's programme is aimed at
accelerating economic growth and raising the GDP growth rate by
4.2% next year. The key to the success of the fiscal programme is a
decisive wage policy and cuts in work force. It is expected that a
significant reduction of the net unemployment rate will be achieved
by implementing reforms in the defence sector.
"By starting the lay-off of some 5,000 employees in the defence
sector in the first quarter of 2003, the government intends to
reduce the number of employees in the Defence Ministry by around
12,000," the document notes.
Structural reforms include reforms in fiscal and financial
sectors, a reform in public companies and privatisation, and a
reform of the production and labour market.
For example, the document notes that by the end of March next year
the government intends to adopt a decision on the privatisation of
the Croatian Oil Industry (INA), that the privatisation of power
plants would be possible in 2004, that the Adriatic Oil Pipeline
(JANAF) would not be privatised, etc.
The document also mentions the adoption of new laws on companies,
bankruptcy, market competition and labour. The two latter should be
approved by parliament by the end of February.
(hina) rml sb