IMF mission starts regular Article IV visit to Croatia

By bne IntelliNews February 21, 2014

An IMF mission arrived on a 12-day Article IV mission in Croatia on February 20, the Croat central bank said.

The aim of the visit is to look closer into the current economic, financial and social conditions in the Adriatic country and to estimate the future trends, the consolidation of the public finances, the progression of structural reforms and the state of the banking system, the central bank said in a statement.

In December 2013, local economists said that Croatia should consider an IMF arrangement once it enters the EU's excessive deficit procedure, under which the government has to reduce the deficit to 2.7% of GDP in 2016 from the current 5.0% of GDP.

Yet, central bank governor Boris Vujcic said in January Croatia does not need the financial support of international lenders like the IMF and the EU. According to him, asking for international support is always an option but is not in the plans of the Croatian authorities for the time being.

Croatia ended a fifth consecutive year of recession in 2013. 

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