INTRODUING KUNA IN CRO DANUBIAN AREA TOP PRIORITY FOR 1997 - CENTR

CENTR $ AL BANK GOVERNOR ZAGREB, Dec 27 (Hina) - "The results of monetary operations in Croatia have been extremely positive this year and I find it very confortable sitting in the governor's chair right now," Croatian central bank governor Marko Skreb said in a Croatian TV news broadcast on Friday. "This year, Croatia was among the countries with the most stable currency, not only among transition countries but very near the European top," he said. "This is encouraging, because a stable currency and low inflation are the best guarantees of a high economic growth in the future," Skreb said. "1996 was also marked by the rehabilitation and reform of the banking system," which resulted in a "significant decrease of interest rates," Skreb said. Like the two previous years, 1996 would be recorded as a year of significant growth of foreign currency reserves, he said. The central bank's foreign currency reserves totalled US$ 2.3 billion, while commercial banks had about US$ 2.1 billion, according to Skreb. "The top priority for 1997 will be the introduction of the kuna as the only legal tender in the Croatian Danubian area, with all its political implications," Skreb announced. "I can also say that 1997 will be a year of financial stability of both the exchange rate and prices, with inflation not exceeding 3 to 4 percent," Skreb concluded. (hina) as 272241 MET dec 96