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CENTRAL BANK GOVERNOR ON INTRODUCTION OF KUNA IN CRO DANUBIAN AREA

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$ ZAGREB, Jan 9 (Hina) - One of the central bank's priorities in 1997 was the introduction of the kuna to the Croatian Danubian area, National Bank of Croatia (NBH) governor Marko Skreb told a news conference on Thursday.
AREA $ ZAGREB, Jan 9 (Hina) - One of the central bank's priorities in 1997 was the introduction of the kuna to the Croatian Danubian area, National Bank of Croatia (NBH) governor Marko Skreb told a news conference on Thursday. #L# "Preparations are already underway but the actual date is a matter to be determined by politicians," Skreb said. "The dinar-kuna exchange rate will depend on that date, in view of the high inflation in Serbia - still, the goal is to achieve a prompt monetary integration of the region, not to put the citizens at a disadvandage," Skreb said. Skreb and his associates also outlined the main topics discussed at yesterday's NBH council session. Chairman of the Payments Bureau (ZAP) management board, Pero Curkovic, said the Bureau maintained close contacts with Transitional Administrator Jacques Klein. Preparations for the reintegration of the Danubian area into the Croatian payments system would be carried out in three stages - assessment of the current situation, installation of the necessary equipment and education of personnel. This process was to be completed within 10 to 20 days, depending on the cooperativeness of the other side, Curkovic said. The central bank council on Wednesday reviewed economic trends in the past year and the policies for 1997. It was noted that retail prices had increased by 3.4% from the previous year (1995). The council strongly supported the issue of kuna-denominated Eurobonds as "contributing to Croatia's overall credibitility," Skreb said. Discussing the monetary policy for 1997, the council expressed concern over the expansive fiscal policy and foreign indebteness, Skreb said. (hina) as 091557 MET jan 97

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