Croatia: IMF as Last Exit

Politics ♦ Published: November 11, 2013; 19:49 ♦ (Vindobona)

It is likely that the ailing country is seeking assistance from the IMF. Borrowing in 2014 is risky, Finance Minister Slavko Linic said.

Croatia: IMF as Last Exit / Picture: ©

In 2013, Croatia´s GDP will shrink for the fifth consecutive year. Due to the deep recession, Croatia is unable to sharpen the austerity measures. Already in spring, Linic underlined that the country would not absorb another fiscal contraction. In the past, austerity measures proved harmful, he said. As a result, a widening fiscal gap in the short term is the better alternative, he…