ZAGREB, March 24, 2018 – Finance Minister Zdravko Marić said on Saturday that Standard & Poor’s decision to raise Croatia’s credit rating was very good news, but that at the same time it obliged Croatia, adding that final details about the financial restructuring of the road sector would be discussed by the government and that a convergence programme for the next three years would be adopted soon.
The Standard & Poor’s (S&P) agency reported on Friday that it had raised its long-term foreign and local currency sovereign credit ratings on Croatia to ‘BB+’ from ‘BB’. The outlook is stable. The agency affirmed the short-term foreign and local currency sovereign credit ratings at ‘B’.
Marić told Hina that S&P had raised Croatia’s ratings primarily because of the fiscal consolidation, namely because of everything that was done to reduce the budgetary deficit and the public debt to GDP ratio. “They recognised economic performances, and the credit goes to the entire economy, which at this moment is growing at a 3% rate, still below the potential growth rate. It is necessary to make headway to raise the potential growth rate and to make economic growth sustainable, which would guarantee the continuation of fiscal consolidation,” Marić said.
“I believe we need to look ahead. These good results are satisfactory, but not entirely. We need to look ahead and think about ways to help restore the investment rating,” the minister said.
He said S&P underlined the need for the continuation of fiscal consolidation and structural reforms. “In about a month, the government will adopt a convergence programme for the next three years in which it will clearly define the direction it wants to take,” Marić said. He said the S&P also underscored progress made in financial restructuring of the road sector, adding that final details of the restructuring process would be discussed at the government session next week.
