Republic of Croatia: Selected Issues
Volume/Issue:
Volume 2007
Issue 082
Publication date: February 2007
ISBN: 9781451817454
$20.00
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Topics covered in this book
This title contains information about the following subjects.
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Business and Economics , Banks and Banking , Exports and Imports , Labor , Money and Monetary Policy , Public Finance , 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
Summary
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.
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