ZAGREB, Aug 8 (Hina) - Croatia's credit rating for August remained DB4d, despite the recent political turmoil in the country, and analysts of the Dun & Bradstreet (D&B) house believe that the incumbent government is able to complete
reforms it has launched.
ZAGREB, Aug 8 (Hina) - Croatia's credit rating for August remained
DB4d, despite the recent political turmoil in the country, and
analysts of the Dun & Bradstreet (D&B) house believe that the
incumbent government is able to complete reforms it has launched.
#L#
"Croatia's risk outlook is dominated this month by the resignation
of Prime Minister Ivica Racan owing to the serious deterioration in
the already strained relationship between the 2 main members of the
5-member coalition" and by the Croatian Social Liberals (HSLS)
departure from the government as well as by the set-up of the new
Cabinet, read the report issued by the Dun & Bradstreet (D&B)
house.
Despite the political changes in June, Croatia's credit rating
remained the same, and the D & B analysts believe that Premier Racan
will succeed without the participation of HSLS members in his new
cabinet.
They maintain that the new cabinet will survive and show its ability
to pursue the reform process.
The support in the parliament will be sufficient for the new
government to stay in office until the end of its current term of
office at the start of 2004.
The report cited significant economic events in last month such as
the fact that Croatia and Macedonia amended their 1997 bilateral
trade agreement and that Zagreb initialled a free trade agreement
with Albania.
The mark DB4d covers countries with moderate risk where there is
significant uncertainty over expected returns from investments.
At the top of this standings for eastern and central European
countries are Hungary and Slovenia with the best mark DB2d meaning
low risk.
Croatia has had the same mark for several months, according to the
report quoted by the Zagreb-based Bonline company.
(hina) ms