$ ZAGREB, 5 Feb (Hina) - The Croatian National Bank (NBH) Council on Wednesday held a session under the chairmanship of NBH Governor Marko Skreb. The council considered economic and financial developments in 1996 and in January of
1997, and set frameworks for its monetary policy in February, a statement from NBH said.
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ZAGREB, 5 Feb (Hina) - The Croatian National Bank (NBH)
Council on Wednesday held a session under the chairmanship of
NBH Governor Marko Skreb. The council considered economic and
financial developments in 1996 and in January of 1997, and set
frameworks for its monetary policy in February, a statement
from NBH said. #L#
Compared to January, retail prices in February increased
by 1%, producer prices of industrial products by 0,5% and
living costs by 1,5%, which is more than usual, Council
members said, but concluded that this does not call for
changes in the monetary policy.
There are signs that there is a momentary rise in prices,
caused mainly by season- and climate-related circumstances, so
that the monetary policy in February will be neutral, the
statement said.
In case a longer-lasting tendency in the rise in prices
is registered by careful following of further developments,
the monetary policy would have to adopt more restrictive
measures, taking care of its basic obligation to maintain the
stability of prices and rate.
The stability of prices and rate is the main precondition
of healthy economic growth and increased interest in direct
foreign investments.
There is no doubt that the achieved macroeconomic
stability played a key role in the assessment of Croatia's
credit rating by three most important agencies, which put
Croatia among 40 most reliable investment destinations, the
statement said.
In assessing the future economic developments, an
encouraging sign is the fact that credit rates for credit
investments of domestic banks have lately been decreased by
1,7 percentage points. The kuna rate is still stable, with
slight oscillations.
According to available data and estimates, the 1996
deficit in the current account with foreign countries will be
within the planned framework.
The NBH Council also agreed to the appointment of Julio
Krevelj to the post of head of the administration of Volksbank
d.d. Zagreb, as well as to the appointment of Heinrich
Angelides as member of the bank's administration. The NBH
Council also agreed to the appointment of Patrick Porchner as
member of the Zagreb branch office of the French bank Societe
Generale.
(hina) rm jn
051906 MET feb 97