Croatia Tries to Avoid Bail-Out by IMF

Politics ♦ Published: October 2, 2013; 06:48 ♦ (Vindobona)

The 28th EU member country has severe fiscal problems. In order to avoid the IMF, Croatia borrows about $ 1.5bn on the U.S. market.

Croatia Tries to Avoid Bail-Out by IMF / Picture: © Vindobona.org

At the end of September, the U.S. rating agency Fitch has lowered the foreign currency credit rating from “BBB-” to “BB+”. The local currency rating was cut from “BBB” to “BBB-“. The outlook was kept unchanged. Already in August, S&P has lowered the outlook for Croatia´s sovereign debt rating.

As Croatia´s sovereign debt rating was cut to junk status, the…