In the report, cited by the Zagreb-based company BonLine, D&B analysts said that IMF report showed that the deficit target was raised from 3.7 percent of GDP to 4.2 percent of GDP. While higher than agreed originally, this still represents a modest consolidation compared with 2004 when the deficit overshot the programmed target of 4.5 percent of GDP to reach 4.9, the D&B report said.
A delegation of the IMF arrived in Croatia to conduct the second review of the stand-by arrangement in November. D&B analysts expect talks to continue to focus mainly on fiscal policy and structural reforms, along with policy plans for 2006 that include reducing the country's external balance and accelerating the privatisation process.
Among 25 countries of the region, Croatia is ranked 11th with the moderate credit risk indicator DB4d. Slovenia is at the helm of the list with the assessment DB2c (small credit risk indicator), while countries with a high credit risk indicator (DB6d) are Bosnia-Herzegovina, Belarus, Tajikistan, Turkmenistan and Uzbekistan.