Croatian Delegation Visits IMF, World Bank

Washington, October 3, 2004 – A Croatian delegation, lead by the minister of finance Ivan Šuker, the head of the Croatian National Bank Željko Rohatinski, and the President of the Board of Croatian Bank for Reconstruction and Development Antun Kovačev participated at the yearly assembly of the IMF and the World Bank. The delegation held numerous bilateral meetings with the representatives of these institutions, with commercial banks, and representatives of a number of other countries.

Among others, the delegation met with the head of the IMF Mission to Croatia, Mr. Dimitry Demekas, the director of the European Department of the IMF, Mr. Michael Depller, the executive director of the World Bank, Ado Melkert, and the vice-president of the International Bank for Reconstruction and Development (IBRD) for Europe and Central Asia, Mr. Shigeo Katsuo.

The IBRD agreed to continue the preparations for the Strategic Assistance CAS program which would enable Croatia to receive up to 1.5 billion dollars of loans for consulting and assistance services to ease the entrance process of Croatia into the EU, most notably in the spheres of education, science, health care, social security, agriculture, reconstruction of war damaged areas, regional development, and environmental protection. In addition, the delegation also talked about the PAL loans for structural adaptation with their World Bank and IMF counterparts.

Minister Šuker also met with the Dutch Minister of Finance Mr. Gerrit Yalmo and the Minister of Finance of Bosnia and Herzegovina Mrs. Ljerka Matić.  Minister Yalmo offered to provide assistance to Croatia towards preparations for EU membership. Ministers Šuker and Matić discussed plans to introduce value added tax in Bosnia-Herzegovina and to harmonize excise taxes between the two countries.

Minister Šuker and Governor Rohatinski said that IMF officials informed them that monetary criteria stated in the Stand by Arrangement have been met for the nine months of this year.  Mr. Rohatinski said that it is important that the rise of Croatian foreign debt has been slowing down in the last two months. Minister Šuker announced the arrival of the IMF mission to Croatia at the end of October, when negotiations will continue.