ZAGREB, Oct 6 (Hina) - Croatia's credit rating in October has remained unchanged, according to a leading international provider of business information and decision-support services. With a mark of DB4d Croatia is among countries of
moderate investment risk.
ZAGREB, Oct 6 (Hina) - Croatia's credit rating in October has
remained unchanged, according to a leading international provider
of business information and decision-support services. With a mark
of DB4d Croatia is among countries of moderate investment risk.
#L#
According to a report relayed by the Zagreb-based BonLine agency on
Monday, Croatia's economic risk outlook continues to be
characterised by indications of continued strong economic activity
against a backdrop of a rapidly deteriorating external position.
The agency adds that strong domestic demand is placing considerable
upward pressure on imports.
"With goods exports registering growth of 5.7% y/y during the same
period, Croatia's merchandise trade deficit for the first 7 months
of the year widened by an appreciable 17.2% y/y," the report read.
This is why "D&B remains concerned about the rapid increase in
credit underpinning recent investment and consumption
expenditures", it added.
The national external debt climbed to USD19 billion, representing
"a remarkable increase of 51.4% y/y, equivalent to 68.9% of our
forecast GDP for '03", the report read.
Taking into consideration both the scale of the country's external
debt and its sizeable current account shortfall, "Croatia is
becoming increasingly vulnerable to a downturn in investor
sentiment".
Croatia is the tenth-ranked on a list of 25 transition countries.
The top position is occupied by Slovenia with DB2c mark. It is
followed by Hungary (DB2d). This is the category for countries with
low risk investment.
At the bottom of the list are Albania, Belarus, Bosnia-Herzegovina,
Georgia, Serbia-Montenegro, Tajikistan, Turkmenistan and
Uzbekistan with DB6d mark indicting a high investment risk.
(hina) ms sb