OMRI DAILY DIGEST
No. 73, 12 April 1996

SLOVAKIA'S CREDIT RATINGS UPGRADED. Standard & Poor's on 11 April
increased its rating of Slovakia from BB+ to BBB-, international and
Slovak media reported. Slovak National Bank Chairman Vladimir Masar told
Slovak TV that the new ratings move Slovakia for the first time from the
speculative to the "investment rating grade." Slovakia now has the same
rating as Poland and is ahead of Hungary. The Czech Republic recently
received an A rating, becoming the first post-communist country to move
into that category. Standard & Poor praised macroeconomic developments
in Slovakia, where the economy grew by 7.4% last year and annual
inflation was only 7.2%--the best such indicators in Eastern Europe. It
also hailed Slovakia's foreign trade and budget policies. But at the
same time, the agency warned that further upgrading may be impeded by
the country's unstable political situation and the lack of industrial
restructuring. -- Jiri Pehe

BOSNIAN INMATES START RIOT IN HUNGARIAN PRISON. Some two dozen inmates
from the former Yugoslavia on 10 April staged a riot in a Hungarian
prison to demand the acceleration of their repatriation, Hungarian and
international media reported. National Prison Authority officials said
the riot was initiated by three Bosnians. Later, 20 ethnic Albanians
from Kosovo joined the protest. They threatened to commit suicide and
broke windows and furniture to press their demands for repatriation. The
riot followed the 14 March visit of a Bosnian Embassy official who had
promised the three Bosnians repatriation in a few days. The three men
were arrested for illegally entering the country. -- Zsofia Szilagyi

OPPOSITION TO HUNGARIAN PREMIER'S PROPOSAL TO ESTABLISH INVESTIGATIVE
OFFICE. Opposition parties, the junior coalition Alliance of Free
Democrats (SZDSZ), and many deputies from the Socialist Party oppose
Gyula Horn's initiative to set up an office to investigate white-collar
economic crime, Hungarian media reported on 12 April. Many opposition
deputies fear that the new office would mean a still larger state
apparatus that is no more efficient. SZDSZ chairman Ivan Peto stressed
that his caucus would vote against the office, as the SZDSZ has been
advocating a less costly state structure. He suggested that in order to
fight corruption and black-marketeering, tax legislation be tightened
and the police force, the National Security Office and the prosecutor-
general's position all be strengthened. -- Zsofia Szilagyi

HIGH-LEVEL DEFENSE MEETINGS IN BUCHAREST. German Defense Minister Volker
Ruehe, speaking in Bucharest on 11 April, said that Romania and Hungary
have an equal chance of joining NATO, Romanian and international media
reported. Ruehe met with his Romanian counterpart, Gheorghe Tinca, and
Prime Minister Nicolae Vacaroiu. He is scheduled to meet with President
Ion Iliescu. Meanwhile, Hungarian Chief of Staff Sandor Nemeth is also
in Bucharest. At a joint press conference with his Romanian counterpart,
Gen. Dumitru Cioflina, he said Hungary will back Romania's quest for
NATO membership because it would be detrimental for security in Europe
and the region if countries belonged to different security systems.
Nemeth and Tinca also signed two military accords. -- Michael Shafir

[As of 12:00 CET]

Compiled by Jan Cleave