The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Banking

Croatia: Regional leader or EU laggard?

After EU entry in July and despite five years of recession and a worrying local court ruling on foreign-currency mortgages, Croatian banks are in surprisingly good shape. The state even hopes to sell one of its biggest lenders.

This should have been a year of triumph for Croatia. In July, the nation of 4.3 million finally achieved its long-held ambition of joining the European Union, becoming the first of the post-conflict countries of the western Balkans to do so and the first new entrant to the bloc since 2007.

Unfortunately, things have not gone quite according to plan. Far from being a year of celebration, 2013 has been one of stagnation and frustration for Croatia. The economy has failed to show signs of a return to growth for the fifth year in succession; unemployment has edged up to just under 20% of the total workforce; and in mid-September a downgrade by Fitch Ratings deprived the country of its last remaining investment-grade rating.

What is more, that announcement came hard on the heels of an acknowledgement by Croatian finance minister Slavko Linic that the government would once again miss its target of bringing the budget deficit down to below 3% of GDP – which in turn means the country looks set to make EU history of a more embarrassing kind later this month, when it will become the first new entrant to go straight from accession into the bloc’s excessive deficit procedure.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree