CROATIAN GOVERNMENT ON STABILIZATION PROGRAMME

ZAGREB, April 7 (Hina) - Speaking at today's Croatian Government session of the implementation of the stabilization programme, Croatian Prime Minister, Nikica Valentic, stated that "the monetary policy is being carried out as planned, liquidity is good, the interest rates and taxes policy is yielding results, the offer of the dinar is getting better on the market, and the cost of capital has been cut down." Croatian Prime Minister added that the Government would undertake steps for revival of the production explaining that all the Government's measures in the stabilization programme would fail if the growth of production were not fostered. "Prices remain to be stable," said the Deputy Prime Minister, Borislav Skegro. He informed the Government of the appropriated international credits for the restoration of the war- stricken Croatian economy and infrastructure. The governor of the Croatian National Bank, Pero Jurkovic, said that the negotiations on the stand-by arrangement with the International Monetary Fund (IFM) would commence on the 3rd of May. Croatian Minister of Agriculture and Forestry, Ivan Tarnaj, informed that talks with representatives of the World Bank would begin on the 13th of April on appropriating 23-million-dollar loan for the Croatian agriculture. The Government decided at today's session to establish a committee for the foreign economic relations. The head of the committee will be the prime minister of the Government. 071728 MET apr 94