Sanader About Budgetary deficit
Ivo Sanader, Prime Minister, announced that the budgetary deficit this year will not be higher than last year and that the State will issue loans on foreign markets to refinance the due debts.
This was announced by the Prime Minister while commenting the latest statements of Željko Rohatinski, Governor of the Croatian National Bank (HNB), and his proposed measures to reduce the inflation specified after the recent meeting between the Government and bankers.
“He (the Governor) only repeated what we told him at the meeting, what we did and what we announced, within the advices the HNB gave to the Government”, believes Sanader. Ivan Šuker, the Minister of Finance, who made a statement for the press afterwards, expressed his satisfaction that Governor Rohatinski supported governmental measures.
“I am pleased that the Governor supported governmental measures as we do the measures of monetary policy”, said Šuker characterizing the relations and cooperation with the Governor as excellent. Sanader appealed to the HNB to do its part of the job.
“It is easy to say what needs to be done by someone else, but it is also good to say what we need to do. The Government will be the first to provide an example and we expect the same from others.” Both the Prime Minister and the Minister of Finance point out that the budgetary deficit for this year will not exceed the one from last year, and the Government, according to Sanader, will make attempts to reduce it.
“The budgetary deficit of 2.4 to 2.5% (of GDP) will be retained this year as well. This is what the Government could do, it is the fiscal policy which will not generate consumption”, said Sanader, adding that the proposed indebtedness abroad to refinance the due debts is governmental proposal specified by someone else.
We wish to verify the status, Croatia’s rating abroad and alleviate the situation in Croatia, said Sanader. His announcements were confirmed by Minister Šuker who also mentioned a deficit of 2.3 to 2.4% of GDP, and pointed out that state indebtedness abroad was already discussed prior to the meeting with the Governor and bank representatives with the Government, at the meeting with bankers a week ago at the Ministry.
The Ministry estimated that this year’s indebtedness will amount to around HRK 11bn, said Šuker.
HINA
