Republic of Croatia: Request for Stand-By Arrangement

IMF Staff Country Reports, February 11, 2003

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Paper examines the Croatia’s Request for a Stand-By Arrangement (SBA).
Despite a disappointing merchandise trade performance, strong exports of services and private transfers have helped restrain the current account deficit.
The authorities' program for 2003 constitutes a major step toward long-term fiscal sustainability and higher economic growth.
The authorities recognize that more needs to be done in the future to boost the population’s standard of living and put Croatia on a firm path of real convergence with the European Union.
The IMF staff supports the authorities’ request for a SBA.
Publication date: February 11, 2003.

Merchandise trade performance described as disappointing.
Strong exports of services contributed to restraining the current account deficit.
Private transfers also helped restrain the current account deficit.
Authorities’ 2003 program assessed as a major step toward:
- Long-term fiscal sustainability.
- Higher economic growth.
Authorities acknowledge additional reform needs to:
- Boost the population’s standard of living.
- Achieve real convergence with the European Union.

IMF staff supports the authorities’ request for a Stand-By Arrangement (SBA).
The 2003 program is positioned as central to achieving fiscal sustainability and growth, implying prioritization of fiscal measures and structural reforms.

Subjects: Central banks, Currencies, External debt, Foreign exchange, International reserves, Money, Public debt.
Keywords: appreciation pressure, core inflation, core rate of inflation, CR, Currencies, Eastern Europe, Europe, Global, government debt guarantee, headline inflation, International reserves, ISCR, privatization receipt, twelve-month rate, Western Europe.