Croatian Government Instability Delays Planned Eurobond Issue
6 June 2016, VG Intelligence Weekly Issue 009
In a written statement on 1 June, the Ministry of Finance said they had decided to proceed with this year’s Eurobond issue after the current political uncertainties in Croatia are settled. Finance Minister Zdravko Maric (HDZ) said that the ministry would continue monitoring trends in international financial markets before re-launching the issue. Maric added that the delay did not jeopardise the current annual budget.
Prior to the Ministry’s announcement, a delegation comprised of ministry representatives and Croatian National Bank (HNB) representatives held a meeting with investors in Germany and London. The delegation presented Croatia’s basic macroeconomic indicators, the National Reform Programme, and the fiscal and monetary policies. A recent Reuters article stated that Croatia had hired the investment banks Citigroup, HSBC, Societe Generale and Unicredit to manage the new Eurobonds issue, with around €1 billion in Eurobonds projected to be released. In the previous Eurobond issue held in March 2015, €1.5 billion were borrowed with a 10-year maturity…