Republic of Croatia: Selected Issues

February 12, 2019

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Format: Chicago

Republic of Croatia: Selected Issues, (USA: International Monetary Fund, 2019) accessed March 26, 2025

Summary

This Selected Issues paper explores how intersectoral vulnerabilities and risks have shifted over 2001–17, and especially after the Global Financial Crisis. It analyzes financial positions at the sectoral levels deposit taking institutions and non-financial corporations, households, the public sector, and the Croatian National Bank by disaggregating them into instruments, currencies, and maturities. The paper has employed balance sheet analysis (BSA) to gauge cross-sectional exposures and risks. The BSA approach is a method to study an economy as a system of interlinked sectoral balance sheets. The policies to reduce the remaining vulnerabilities have also been discussed in the paper. Standard macroeconomic indicators demonstrate that Croatia’s overall external vulnerabilities have declined since 2010. However, the balance sheet matrix shows little improvement in reduction of important cross-sectoral dependencies and liabilities to the rest of the world over 2010–17. One of the recommendations made is to encourage deleveraging through specific policy options and strategies.

Subject: Banking, Currencies, External debt, Financial institutions, Financial statements, Foreign exchange, Loans, Money, Public financial management (PFM)

Keywords: Balance sheet, Bank, Central and Eastern Europe, CR, Currencies, Debt, Eastern Europe, Financial statements, FX, FX debt, FX lending, FX mismatch, FX position, FX stress test, Global, ISCR, Loans, Sustainability analysis

Publication Details

Pages:

18
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2019/047
Stock No:

1HRVEA2019002
ISBN:

9781484398692
ISSN:

1934-7685

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