Last update on: 8.2.2010 | 13:26
WARNINGS
D&B: IMF would only deepen the crisis in Croatia
Author/source: SEEbizAccording to D&B, 24.5% of Croatian companies were over 30 days late in paying their liabilities towards foreign companies, 64.2% paid them within the agreed deadline and 9.9% were over 60 or more days late. Due to the credit crunch and other market omens, D&B says this will remain a challenge to Croatian corporate sector.
Also, the rise in foreign debt increases the exposure to external shocks. According to the Croatian National Bank (HNB), foreign debt reached USD 55.9bn, up 15.1% from 2007, in spite of restrictive crediting policy.
In a short period, the government will be faced with high deficit and if it should decide to borrow from the IMF, this will be through a stand-by arrangement. However, the IMF's arrival would only deepen the crisis, with the alternative being further indebtedness with foreign creditors.
Rating remained the same for all regional countries, Slovenia (DB2c), Hungary (DB3d), Albania (DB4a), Macedonia (DB4b), Serbia (DB5a) and Bosnia and Herzegovina (DB6a).
Vezane vijesti
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'FINANCIAL STABILITY' 8/11/2010 2:28:48 PM
HNB: Croatia's GDP to drop 1.6% this year ZAGREB - Development should be based on export instead of domestic demand. -
ANNOUNCEMENTS 8/11/2010 12:18:06 PM
Serbia's budget revised in two months PRANJANI - Talks on the fifth revision of the IMF arrangement will begin on 23 August. -
REPORT 8/3/2010 1:11:56 PM
D&B freezes Serbia's rating; recovery slower BELGRADE - Slovenia still has the highest rating, flanked by Croatia. -
FORECASTS 7/29/2010 12:44:50 PM
Economic Institute: GDP to drop 1.7% instead of 0.7% ZAGREB - Investments should drop 11% and export is seen to increase 6%. -
PUBLIC ADDRESS 7/14/2010 11:54:08 AM
HNS: Govn't needs to borrow HRK 13bn more by year-end ZAGREB - According to HNS leader, Croatia experiences "the biggest standstill in history".
