The report says Croatia intends to treat the US$141 million agreement as strictly a precautionary measure. The agreement, however, is significant because it supports the current policy and has a positive effect on investors due to the IMF's backing.
Dun & Bradstreet maintains the positive effect on investors is very significant given that Croatia is exposed to market moods and needs to attract as many foreign investments as possible in order to cover its considerable external trade deficit and stop further borrowing abroad.
The agency notes that the IMF has voiced concern about Croatia's foreign liabilities but has also underlined the role of the central bank in curbing bank borrowing. The agency says this role is crucial given that banks carry a considerable share of the responsibility for Croatia's foreign debt.