Republic of Croatia: Selected Issues

International Monetary Fund

No 2007/082, IMF Staff Country Reports from International Monetary Fund

Abstract: This Selected Issues paper highlights key policy challenges for accelerating growth on a sustainable basis and reducing external and financial vulnerabilities in the Republic of Croatia. A significant reduction in public expenditure would be needed to simultaneously provide room for cutting taxes, boost growth, and lower the budget deficit to help narrow the current account deficit. The analysis finds that Croatian banks are not necessarily passing on the higher risk of foreign exchange-linked loans to unhedged clients by charging higher interest rates.

Keywords: ISCR; CR; GDP; deficit; growth slowdown; loan-loss reserve; debt build-up; foreign exchange; foreign currency; Currencies; Credit risk; Loans; Europe; Central and Eastern Europe; Global (search for similar items in EconPapers)
Pages: 104
Date: 2007-02-27
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Citations: View citations in EconPapers (11)

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