Republic of Croatia: Staff Report for the 2006 Article IV Consultation
Volume/Issue:
Volume 2007
Issue 081
Publication date: February 2007
ISBN: 9781451817447
$20.00
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Topics covered in this book
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Banks and Banking , Exports and Imports , Money and Monetary Policy , Public Finance , Business and Financial , ISCR , CR , December foreign trade data , credit growth , deficit , staff appraisal , CNB bill , government savings , CNB estimate , Current account deficits , Loans , Europe , Eastern Europe , Central and Eastern Europe , Western Europe , Southern Europe
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Summary
The 2006 Article IV consultation underlies policy issues, including fiscal policy, monetary policy, and structural issues of the Republic of Croatia. Although bank restructuring and privatization have strengthened the financial sector, strong credit expansion and foreign exchange-induced credit risk have raised concerns. To address external vulnerabilities and reduce the burden of the large government on economic growth, Executive Directors recommended more ambitious fiscal consolidation than the authorities’ medium-term plans currently envisage. They stressed the urgency of restructuring the loss-making shipyards and removing impediments to privatization.
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