Fitch has downgraded our rating outlook, but not the rating itself. However, it would not be good if other agencies acted in the same way, said Finance Minister Slavko Linić.
In an interview with Jutarnji list, Linić stated that losing the investment rating would significantly change the situation for Croatia.
-Fitch’s correction is a result of insufficient wage reductions this year, as well as, according to them, inadequately large savings projected in the budget for next year, said the minister.
He noted that the government clearly stated at the beginning of the year where and how much needs to be saved, but some ministers did not implement that plan, so the increased revenues from the budget revision were directed towards covering salaries.
-If we had used at least one of the three billion in increased revenues for reducing the deficit, Fitch would certainly not have happened to us, said Linić.
Regarding the underperformance of investments, Linić admits that public companies have undoubtedly failed, noting that their management and supervisory boards are responsible.
-Some will be given opportunities to correct mistakes and implement restructuring. We will see what the last quarter will look like, but some ministers are seriously considering changes. The first changes have just occurred, the minister emphasized.
When asked if this means that, after the cuts in HAC, new cuts will follow, Linić replied that this will certainly happen if the results of operations and restructuring demand it.
