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).
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