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Croatia pins hopes on World Bank partial guarantee

A ratings uplift and a better profile for Croatia’s SOE debt could be brought closer with a helping hand from the World Bank

Croatia is hoping to get a partial guarantee from the World Bank for a bond transaction that will help it reprofile the debt of some of its state-owned enterprises and meet targets necessary to achieve its goal of joining the euro, several people familiar with the matter have told Euromoney.

The deal would be only the second to feature a partial guarantee from the World Bank, which was debuted in October when Ghana issued a $1 billion international bond due in 2030. The transaction is meant to help Ghana achieve targets set by the International Monetary Fund as part of its aid programme. The country has been troubled by over-indebted and poorly managed state-owned enterprises with large arrears. The bond was 40% guaranteed by the World Bank.


After the storm, a
pot of gold for


Now Croatia, which has a BB (stable) outlook, is in negotiations with ratings agencies to get a credit uplift from a partial World Bank guarantee. The multilateral development bank approved a loan of €22 million and a proposed guarantee of €350 million to Croatia for the country’s Modernization and Restructuring of the Roads Sector Project in April this year.

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