Croatia will continue to follow the developments on international financial markets, bearing in mind its plan to issue a Eurobond this year as soon as the current political ambiguities in the country are removed, the Finance Ministry stated on its web site on Wednesday.
According to a press release, a delegation of officials from the Finance Ministry and the Croatian National Bank (HNB) conducted successful meetings with investors in Germany and London lately.
"The delegation of the Ministry of Finance and the Croatian National Bank held a series of very successful meetings with the investors in Germany and London this week. Basic macroeconomic indicators were presented as well as rising economic trends, reform programme, and fiscal and monetary policy," reads the press release.
"The investors' reaction was very positive but the decision was made to continue to monitor the trends in international financial markets with the intent to issue the only Eurobond planned for this year after the current domestic political uncertainties are settled."
In early May, Reuters reported that Croatia had hired Citigroup, HSBC, Societe Generale and UniCredit to lead mange a euro bond.
Finance Minister Zdravko Maric told Hina in mid-April that borrowing envisaged by year's budget amounted to one billion euros, adding that the government also planned to tap international markets.
Foreign media outlets have speculated that the bond issuance should happen this week, however, the ministry stated today that a decision was made to continue to monitor the trends in international financial markets.
According to local bankers, investors have to have confidence in those who issue the bond and the postponement is a message that the political situation must stabilise.
The last time Croatia issued a Eurobond on the foreign market was in March 2015. Zagreb issued a 1.5 billion euros 10-year benchmark-sized bond at mid-swaps plus 260bp area, with a 3.25% yield. This was the the most favourable borrowing for Croatia on foreign markets, owing to the European Central Bank's flexible monetary policy.