At the meeting held on Wednesday, December 4, 2002 the Council of the Croatian National Bank reviewed economic and monetary developments in the last quarter of this year and the 2001 Annual Report of the State Agency for Deposit Insurance and Bank Rehabilitation. The president of the parliamentary Committee on Finance and Government Budget Tonči Žuvela also attended the meeting chaired by the Deputy Governor Dr Boris Vujčić.

Macroeconomic developments have shown no significant changes in comparison with those in the previous periods. Stability of prices remains satisfactory while the exchange rate continues to fluctuate within a narrow band without any central bank interventions on the foreign exchange market. Only the balance of payments developments are less favorable than forecasted, owing to a continuously high growth of imports. In addition, the latest estimates suggest that the income from tourism will be lower than forecasted. Taking this into account, the current account deficit for 2002 will probably be somewhat higher than expected. By the estimate of the CNB Council members, further balance of payments movement will depend on the developments in the consolidated general government budget deficit and lending activity of commercial banks.

The director of the State Agency for Deposit Insurance and Bank Rehabilitation Marinko Filipović informed the Council that until the end of 2001 the Agency almost completely met its liabilities, totaling about 3.65 billion kuna, to owners of insured deposits in bankrupt banks and savings banks. Only about 64 million kuna remain to be paid out, primarily to savers from distant countries or those engaged in unsettled deposit inheritance disputes.

The CNB Council approved the nomination of Mr. Robert Posavec for member of the management board of Zagorska banka d.d. Krapina.