FinMin says Eurobond issue delay won't bring budget into question

Finance Minister Zdravko Maric said on Thursday that the postponed Eurobond issue would not bring into question anything regarding the budget.

Speaking to the press at the government, he said the payment of "pensions, salaries, social and other contributions, the servicing of our liabilities, everything is going as planned."

He said the government had a time plan for the transactions it was carrying out, both on the domestic and on the international financial market, which was in accordance with this year's budget and liquidity plan. "None of that is in question."

Maric said the Eurobond issue "is not in question" and that, after careful consideration and rational conclusion, it was decided to postpone it because it was estimated that the conditions of Croatia's borrowing could improve in the foreseeable future.

The Ministry of Finance said on Wednesday that a delegation of its and Croatian National Bank representatives "held a series of very successful meetings with investors in Germany and London this week. The basic macroeconomic indicators were presented as well as rising economic trends, the reform programme, and the fiscal and monetary policies," reads the press release.

"The investors' reaction was very positive but it was decided 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," the ministry said in a press release.

The last time Croatia issued a Eurobond on the foreign market was in March 2015. Zagreb issued a 1.5 billion euro 10-year benchmark-sized bond at mid-swaps plus 260bp area, with a 3.25% yield. This was the most favourable borrowing for Croatia on foreign markets, owing to the European Central Bank's flexible monetary policy.

Last update: Thu, 02/06/2016 - 15:32
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