Croatia’s finance ministry plans budget revision in Q4/2013

By bne IntelliNews July 4, 2013

The Croatian finance ministry plans to perform a budget revision in the last quarter of 2013 in order to cover HRK 3bn (EUR 403mn) liabilities of the public healthcare sector, news agency HINA reported, quoting finance minister Slavko Linic as saying.

Linic stressed that the budget deficit for the first half of 2013 is very high, exceeding the planned budget deficit for the whole 2013.

However, the finance ministry will try to cover the gap by end-2013 by rescheduling the HRK 3bn liabilities of the health sector as the ministry does not expect to have an additional HRK 3bn on the revenues side of the budget by year-end. Linic said that the revision will be technical and will be done to register the payment of the health sector liabilities in the last quarter of 2013, when a draft budget for 2014 and projections for 2015 and 2016 budgets will be made.

In April, the Croatian parliament approved the first revision of the 2013 budget plan, which envisages a budget deficit of HRK 10.2bn, or 3% of GDP this year, down by 0.2pps from the initial plan.

In addition, the finance ministry plans to issue state bonds on the domestic market next week. Part of the issue will comprise kuna-pegged bonds, while the other part will be denominated in foreign currency. Linic said that the interest rate on the issue will be about 5%, while the maturity will be rather long. He did not disclose the amount of the issue.

Related Articles

Croatia reportedly receives just one bid to lease capacity at planned LNG terminal

LNG Hrvatska has reportedly received just one binding offer to lease capacity at the planned planned liquefied natural gas (LNG) terminal on the Croatian island of Krk, unnamed sources ... more

London court to consider extradition of Agrokor founder

The owner of Croatia’s heavily indebted food and retail giant Agrokor, Ivica Todoric, will appear in a London court on April 10 in connection with Croatia’s extradition request, Total Croatia ... more

Croatia greenlights €1.8bn debt restructuring of road management companies

The Croatian government decided on March 29 to offer state guarantees for loans worth €1.8bn that road management firms will take out to refinance their debt, and announced further financial ... more