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ECONOMIC BRIEFS

JP Morgan's loan report on Slovakia

From a Loan Report on Slovakia submitted by JP Morgan: "Slovakia is one of the best of the transforming countries in Central Europe, exhibiting the highest economic growth. The political climate is solely to blame for the limited inflow of foreign capital. Tensions on the political scene are, thourh, softened a bit by a strong democtratic system. The strong foreign financila flexibility of the country is supported by alow foreign debt and sound hard-currency reserves. The basis for low inflation is strict economic policy. It is likely that Slovakia will in 1997 become an OECD member, and within the next five years it will also join the EU and NATO. Its rating is improving and is, moreover, stable. In the mid-term, its rating will see further enhancement after the political climate improves, although this is going to happen slowly. In spit pf conflicts between Premier Vladimír MeŹiar and President Michal KováŹ, economic reforms continue, political mangement is technocratic, and most of the country¦s political representatives are attempting to join the EU along with the Czech Republic, Poland and Hungary.

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