The news in Croatian

Moody's je unaprijedio kreditni rejting Hrvatske na A3. To je značajno jer je Hrvatska jedina zemlja koja je brzo napredovala za četiri razine tijekom dvije i pol godine. Premijer Plenković kaže da je ovo povijesni uspjeh. Hrvatska sada ima bolje uvjete za ulaganja i ekonomiju. To podupire bolji život građana.

Translation

Moody's has upgraded Croatia's credit rating to A3. This is significant because Croatia is the only country to have swiftly advanced four levels in just two and a half years. Prime Minister Plenković states that this is a historic achievement. Croatia now enjoys improved conditions for investments and economic growth, which supports a better quality of life for its citizens.

Exercise: Text comprehension

Question 1: How many levels has Croatia advanced in its credit rating in the last two and a half years?

Croatia has advanced four levels in its credit rating.

Question 2: What benefit does Croatia have due to its improved credit rating?

Croatia now has better conditions for investments and the economy.

Exercise: Vocabulary

- improve

- credit

(m.) - rating

- significantly

(m.) - conditions

(n.) - investments

Read the full story

▌10/11/2024

In a significant economic development, the global credit rating agency Moody’s has upgraded Croatia's credit rating by two levels, moving from Baa2 to A3 with stable outlooks. This advancement marks Croatia as the only nation to achieve such a rapid increase—four levels in the last two and a half years—since the start of the COVID-19 pandemic, attributing the improvement to comprehensive fiscal reforms and substantial debt reduction.

Prime Minister Andrej Plenković highlighted the remarkable achievement, expressing it as a "historic leap" for the nation. He emphasized that Croatia now joins a select group of around 40 countries worldwide categorized as A-rated by all three prominent credit rating agencies. This enhanced standing not only bolsters Croatia's position on the global investment map but is also pivotal for the betterment of the citizens' quality of life and the business operations environment. Plenković assured that this rating reflects the resilience and robustness of Croatia's economy.

The government's statement pointed to the importance of strong institutions and effective management, as emphasized by Moody's. The agency acknowledged the successful implementation of reforms and strategic investments launched under the National Recovery and Resilience Plan (NPOO). Expectations are that Croatia's fiscal strength will remain robust in the short to medium term, further aiding economic growth.

Moody's Elevates Croatia's Credit Rating to A3 Moody's Elevates Croatia's Credit Rating to A3 (Illustration)

Finance Minister Marko Primorac expressed pride in the rating upgrade, noting it as recognition of responsible fiscal policies and the government's determination to sustain economic growth and uplift citizens' living standards. He affirmed the commitment to continuing policies aimed at enhancing the economy.

Governor of the Croatian National Bank, Boris Vujčić, also commented on the upgrade, indicating that it allows Croatia access to more favourable financial terms. Vujčić noted that Moody’s decision was based on a rapid fiscal consolidation process, which significantly lowered the public debt burden.

The upgraded rating places Croatia on equal footing with EU countries such as Slovenia and Portugal, tying with them at the A3 level, while surpassing several others like Bulgaria and Spain. This status is an indicator of Croatia’s growing economic strength and stability.

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