'visionary' Tactics Cushion The Blow

摘要

Croatia has not been immune to the global liquidity squeeze, but measures taken by its central bank in recent years to avoid an uncontrolled build-up of foreign debt mean the banking system may be less vulnerable than some of its local counterparts. As if growing uncertainty over Croatia's EU entry date and the murder of ajournalist investigating alleged government corruption were not bad enough, the credit crunch has begun to claim victims among eastern Europe's overextended economies at an alarming rate. In a banking sector dominated by foreign-owned institutions, foreign currency lending had taken off in Croatia, potentially exposing borrowers and lenders alike in the event of a liquidity squeeze and exchange rate shock.