Moody’s credit agency – which upgraded Croatia’s credit rating from Ba2 to Ba1, just a notch below full credit rating, and changed its outlook to stable from positive – has clearly recognised the good policy being pursued by the Croatian government and its response to the COVID-19 crisis, said Prime Minister Andrej Plenković, adding that the agency also appreciated Croatia’s entry into the ERM II, the ‘waiting room’ for joining the single currency.
The agency cited enhanced institutional capacity and policymaking as the country enters a critical phase of euro area accession and reduced exposure to foreign-currency debt risk.
“Moody’s believes that Croatia’s policy effectiveness has strengthened over recent years. The government and the central bank have provided a more predictable and stable framework for economic activity in a very uncertain environment. The policy response to mitigate the impact of the coronavirus pandemic has been timely and efficient,” the credit agency said in a report. (Željko Trkanjec | EURACTIV.hr)