IMF Staff Country Reports

Republic of Croatia: Selected Issues Paper

July 1, 2011

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Republic of Croatia: Selected Issues Paper, (USA: International Monetary Fund, 2011) accessed November 21, 2024

Summary

Croatia’s economic vulnerability is discussed in this study. Using the balance sheet approach (BSA), this paper analyzes Croatia’s overall and sectoral vulnerabilities. Croatia’s financial sector balance sheet is exposed to liquidity, contagion, and currency risks. With strong pre-crisis prudential policies and parent banks’ willingness to keep or even increase exposures, the economy’s capacity to tackle another major macroeconomic or financial shock is limited. Given the stable exchange rate policy, a consistent set of structural, fiscal, monetary, and prudential policies are needed for sustained growth and reduced vulnerabilities.

Subject: Banking, Commercial banks, Currencies, Economic sectors, Financial institutions, Financial sector, Foreign currency exposure, Money, Public sector

Keywords: Commercial banks, CR, Creating flow, Currencies, Currency, Currency risk, Debt, Debt stock, Europe, Financial sector, Foreign currency buffer, Foreign currency exposure, Foreign currency position, Intersectoral asset, ISCR, Liability, Liability position, Net, Net foreign currency indebtedness, Prudential foreign currency buffer, Public sector, Short-term debt

Publication Details

  • Pages:

    16

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Country Report No. 2011/160

  • Stock No:

    1HRVEA2011002

  • ISBN:

    9781455293698

  • ISSN:

    1934-7685