This was said in Zagreb on Monday by the European Bank for Reconstruction and Development (EBRD) chief economist for Croatia, Maria Vagliasindi, presenting the bank's 2005 Transition Report.
Speaking of significant indicators in 2005, she highlighted the expected economy growth rate of about four per cent, which was higher than in the euro-zone but, as in most countries of the region, was mainly due to strong credit expansion.
Valgiasindi said EBRD estimates indicated that in this respect Croatia was still in the low risk category, with a stable banking sector.
The EBRD report includes a survey of the business environment in 25 transition countries covering 9,500 companies. The survey showed that since the previous one in 2002, positive steps forward had been made all over the region, notably in Croatia.
The survey also showed that Croatia was among the few transition countries (Hungary, Azerbaijan, Armenia), in which corruption in 2005 was higher than in 2002.
In the future the EBRD will focus more on cooperation with the private sector, notably small and medium-sized enterprise, said Charlotte Ruhe, head of the bank's Zagreb office.
She added the EBRD would also direct its attention to the financing of local self-government projects, notably those involving environmental protection, public transport and water management.
The bank will also continue to participate in infrastructure projects, such as the Ploce seaport, and resume talks with the government on cooperation in the privatisation of big state companies, said Ruhe.