CROATIA WON'T GIVE UP WORLD BANK AND IMF LOANS - PM

ZAGREB, July 18 (Hina) - Croatian Prime Minister Zlatko Matesa said on Friday that the government would not withdraw its requests for loans from the World Bank and the International Monetary Fund. Asked at a news conference about the possibility of Croatia giving up loans from the two international financial institutions, Matesa said that the government was analysing the situation after the recent postponement of loans. "The position of the Croatian government is that it will not withdraw its requests for loans from the World Bank and the IMF," he said. "Even at the height of war Croatia fulfilled all of its commitments, and it enjoys the support of IMF and World Bank officials because of its consistent economic policy and the results it has achieved," Matesa said. "Croatia is one of the few countries which has fully met the criteria from the arrangement with the IMF," the Prime Minister said, adding that it would not be fair to withdraw the requests when the two institutions had not challenged the results Croatia had achieved. Dismissing press reports that Croatia was facing financial isolation, Matesa recalled that Croatia had recently launched Eurobonds without any problem. "Croatia is not threatened by isolation. On the contrary, it is becoming increasingly present on the international financial market, duly fulfilling its commitments." Asked to comment on the fact that Croatia had not been mentioned in EU reports and documents, Matesa said that that had not been expected anyway. "The political reality is that as long as there is a single NATO or SFOR soldier in Bosnia-Herzegovina, Croatia will be held in such a position." Presenting data on industrial production, which grew 10.7 per cent in the first half of the year compared to the same period last year, Matesa said that it was estimated that industrial production would increase by six per cent and gross domestic product by seven to eight per cent this year. Matesa said that the government had no intention of revising the budget. A possible budget revision would depend almost exclusively on efforts at reintegrating and rebuilding the UN-administered Danube river region, he added. Speaking of the tasks the government would deal with over the summer, Matesa cited the drafting of pension legislation and the integration of inspectorates into one state inspectorate. Asked about the return of Serb refugees, Matesa reiterated that Croatia wanted the return to be carried out in "an organised and socially acceptable way." "This is easier to organise at government level than at local level," he added. (hina) vm mm 181553 MET jul 97