engleski

Public Debt in Croatia

Public debt in Croatia is not only a problem related to the period after transition and transformation of the economic system, but rather starts to be a serious issue even before that time. Croatia inherited a part of foreign debt from Yugoslavia that had to be settled with the World Bank, and Paris and London clubs. After 1990 the public debt started to rise in 1996 and continued to increase ever since. In the period starting at the beginning of the 1980s, Croatia as a part of Yugoslavia and Croatia as an independent country shared a similar problem regarding external and internal macroeconomic equilibrium. While internal macroeconomic equilibrium existed there was a problem with external disequilibrium and vice versa. Naturally, the external disequilibria dominated this problem. In this paper we will analyze sustainability of the public debt and possible scenarios of developments regarding the public debt in Croatia.

public debt; Croatia; EMU

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