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EBRD sees opportunities and challenges in Croatia
Bank unveils new country strategy
Despite strong GDP growth and a forging of closer ties to the European Union
in recent years, much remains to be done in Croatia, the EBRD says in its new strategy
for the country.
The Bank concludes that Croatia still faces important structural challenges,
such as restructuring and privatising state-owned utilities and
tourism-related enterprises, and acceleration of reforms in the public
administration and the judiciary.
To address these challenges Croatia should improve the business climate,
promote private-sector participation, further develop regional cooperation and
enhance transparency and efficiency.
The EBRD, which has already invested €1.3 billion in Croatia, intends to
continue to support the country and will focus in particular on the following
sectors:
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In the infrastructure and environment sector the Bank will work with large and
medium-sized municipalities to develop infrastructure projects for prospective
EU co-financing. In addition, the Bank will continue to reach small
municipalities through local banks. The Bank will also support national
infrastructure projects, particularly in the transport sector.
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In the financial sector the Bank will pursue SME and micro finance. While
expansion in credit has been focused on households, SMEs and micro enterprises
in rural areas still lack access to finance. The Bank will also consider
equity participation in the privatisation of the state-owned insurance company.
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With respect to privatisation and the enterprise sector, the Bank's activities
will focus on supporting further privatisation and restructuring of key
enterprises. The Bank will focus on financing and restructuring hotels and
related enterprises underpinning further development of tourism – a sector
seen as essential to Croatia’s future.
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