Should we worry?

[BL]

Croatia,s foreign debts stands at 18,6 billion dollars. Is this worrying or not?

[Tom]

Yes for a small underdeveloped country like Croatia.

[Jela]

I wonder where is that money? Spent it was but on what? And how much more money is going to be taken?!

[Mira]

Although this sounds bad, the Croatian government has been doing a lot of work to help the situation. Many of the reforms introduces (reform of pension system, healthcare, downsizing of the armed forces etc) have all come about as a result of the reform of the economy and the need to deal with foreign debt. International Monetary Fund provides funding but also produces progress reports. I first started reading IMF reports as a part of my post grad study (good source of information for assessing international markets) and I know it might sound sad but I find reading this interesting. An extract from the August press release reads:

“Croatia has made important strides in restoring robust economic growth and achieving price stability while continuing to strengthen its net international reserves position. These achievements owe much to a multi-year effort at fiscal consolidation and—albeit more limited—progress with structural reform. As a result of the fiscal adjustment, stabilization of the public debt ratio is within reach. A new challenge has, however, arisen as a result of an excessively rapid expansion of private sector credit, which has fueled import growth. The attendant sharp deterioration of the external current account was financed by foreign borrowing, which has pushed up the external debt ratio. An early reduction of the external imbalance has thus become an urgent policy priority for the Croatian authorities.
With improved revenue prospects, the general government deficit is expected to decline to 4.6 percent of GDP in 2003. Further fiscal adjustment will, however, be required beyond 2003 as the fiscal and external current account deficits remain sizable. Higher than expected privatization receipts and a strict application of the new criteria for extending government guarantees should help stabilize or even reduce the public debt ratio. To the extent possible, the government is encouraged to meet its borrowing requirements in the domestic capital market, to promote its development, stem appreciation pressures, and absorb liquidity”

If you want to read more, the website address is www.imf.org. You can find a lot more information under country info.

Hope this helps.

[Bojan Ri]

pare su potrosene na gradnju cesta, sto je dobro, i ostala sranja nasljedjena od vladavine dr. Franje. Al ipak ogroman je to dug za Hr

[D]

Sranje, odveli zemlju u rat, isli namjerno u stecaje i kupovali radnicke tvornice i kompanije za nista i krali sakom i kapom. Crvena kvazi mafija pocevsi od komunistickoga generala Tudmana pa do ostalih tzv revolucionara. Svaka vlast koja dode na vrh Hrvatske hoce svoj dio kolaca na racun jadnoga neukoga i obezvrijedenoga hrvatskoga naroda. Zato smo tako u kurcu!! A sve na racun nekoga jebenoga nacionalnoga ponosa he he Nisu ONI ni tako glupi . Znalu su gdje smo najosjetljiiviji!!

[Jela]

Da, to vec vise govori gdje je utroseno 18.6 milijardi Dolara. Za taj novac Hrvatska je danas mogla imat ceste na Europskom standardu a ne kozje putove po kojima turisti i domaci riskiraju zivot za doci do mora.

[zeljko]

NA MENE JE TOLIKI DUG NASE LIJEPE JAKO STRESNO DIJELOVAO DA SAM ODLUCIO ODSELITI U BOGATIJU ZEMLJU KOJA NEMA TAKVIH PROBLEMA.

[Jele]

Ha, ha mislis nasih lijepih....?

[zeljko]

DA NASIH LIJEPIH, DOK SAM JA SKAKUTAO PO BRDIMA ONI SU OSIGURALI I SVOJE PRAUNUKE DA NEMAJU NOVCANIH PROBLEMA.NA NASU NESRECU NE ZNAM KADA BI PRAVNA DRZAVA TREBALA POCETI SA RADOM?ZA JEDNO STO GODINA