Washington, D.C., April 17-19, 2005 – The major focus of the Croatian delegation to the World Bank and IMF spring meeting in Washington was on assistance for structural reforms and encouraging investment in the Croatian economy. The Croatian delegation comprised Finance Minister Ivan Šuker, National Bank Governor Željko Rohatinski and representatives of the Croatian Bank for Reconstruction and Development (HBOR).
Speaking to the Croatian press afterwards, Šuker said it has been agreed that contacts would be established with a new investment promotion agency in Croatia to encourage investors to come to Croatia. Šuker also discussed Croatia’s stand-by arrangement with the IMF.
Šuker said, “First of all, we can say that the fiscal year 2004 is no longer problematic, despite a deficit of 4.9 percent. We can also conclude that great progress has been achieved in regard to the fiscal deficit, which has been reduced from 6.3 to 4.9 percent. This comes as a result of much effort on the part of the Government of Croatia in the past year. Additionally, foreign debt growth has also been slowed. Parallel to this, government bonds issued last year have been brought under control and they have been reduced in relation to the previous year, while the indebtedness of public enterprises has slowed, too. Therefore, the year 2004 is no longer problematic, and I stress this to prevent further speculation on this matter. We have agreed with our colleagues to hold a meeting in Zagreb, at which we will define the criteria for the stand-by arrangement for the year 2005. Those talks will take place from May 27 until June 6.”
“Croatia must undertake internal reforms, but not because of the IMF or the European Union, but because of the well-being of its citizens and for their better tomorrow. The government will present specific plans for structural reforms by the end of May, and we are already working intensively on establishing tighter control of budget revenue payments, an issue upon which the Ministry of Finance will continue to insist, i.e., greater fiscal discipline and payment of taxes by all those who are required to pay taxes, so that in the long run we will all have less expenses to pay,” Šuker finished his statement.
Also, during his visit to the United States, Minister Šuker met Klaus Regling, Director-General for Economic and Financial Affairs of the European Commission for talks on the state of the Croatian economy and relations between Croatia and the Commission in this field. Regling said that the European Commission would be pleased to help Croatia as a future member of the European Union, and that Croatia’s pre-accession economic program was a good framework for structural reform and the government’s economic policy.
Minister Šuker met with U.S. Senator Rick Santorum and asked him to support Croatia’s efforts to join the Euro-Atlantic community. Šuker also informed the senator of the implementation of economic and political reforms in Croatia, and asked him to support Zagreb’s efforts to achieve its main objectives on the foreign political front, including Croatia’s admission to NATO. Santorum said that Croatia has its place in the Euro-Atlantic community and that he would support processes aimed at the strengthening of reforms and further stabilization of South-Eastern Europe.
During his visit to New York, Croatian Finance Minister Ivan Šuker met with the President of the Economic and Social Council at the UN, Ambassador Munir Akram of Pakistan. Minister Šuker highlighted the economic goals of the Croatian government, which include macroeconomic stabilization and growth, fiscal consolidation, reducing unemployment, slowing down the growth of foreign and public debt and the convergence of interest rates which will positively effect private investments.
Minister Šuker used this opportunity to express Croatia’s support for the initiative to strengthen the voice of developing countries and countries in transition with regards to international financial institutions. The Minister said that Croatia views ECOSOC as an important instrument in the coordination of international institutions in formulating global development policies. During Croatia’s presidency of ECOSOC in 2002, Minister Šuker mentioned that Croatia made it a priority to establish better cooperation with Bretton Woods institutions and the World Trade Organization.
The Minister also confirmed Croatia’s commitment to meet the Millennium Development Goals and expressed Croatia’s support for reform of the UN, particularly as it relates to strengthening the role that ECOSOC plays in peace building and post-conflict management. In this context, Minister Šuker said that Croatia supports the initiative to establish a Peace Building Commission which should include members of the Security Council and ECOSOC.
Minister Šuker also met with Jose Antonio Ocampo, Under-Secretary-General for Economic and Social Affairs. The Minister highlighted Croatia’s support for reform of the UN Secretariat, saying that a competent, effective and transparent Secretariat is important for the work of the UN. The Minister also said that Croatia would like to see the strengthening of UN resident coordinators at the country level.