Vujčić: I am tired of attacks on the HNB

Speaking at a conference titled ‘International Competitiveness and Business Attractiveness of Croatia’, the Governor of the Croatian National Bank, Boris Vujčić, stated that he is tired of attacks on the HNB as theses are presented without arguments.

He also reminded that the HNB maintains five billion kuna in excess liquidity in the system, which is why interest rates are historically at their lowest levels, and the state can, Vujčić claims, borrow at historically the cheapest rates through treasury bills. 

“We maintain low inflation as a fundamental goal and alongside that a stable exchange rate, thereby protecting clients who have loans in foreign currency clauses from falling into significantly greater problems. We safeguard the banking system in which citizens keep their money, but since 80 percent of our deposits are in foreign currency, our monetary policy reach has been reduced,” he said.

The Minister of Economy, Ivan Vrdoljak, listed the wood, food, and automotive industries as priorities, and specifically addressed the Law on Strategic Investments. 

“Croatia will in a few years be not only small and beautiful but small, beautiful, and smart. The Law on Strategic Investments is a good law and will bring benefits, as we will have a model by which it will be clearly known who and within what timeframe must do something to accelerate specific projects, and everything will be transparent,” Vrdoljak said.

The World Bank has warned that the level of tax burden in Croatia is too high, as there are too many parafiscal levies that entrepreneurs must pay, and the time required and high costs associated with obtaining building permits create problems for potential investors.
The Minister of Tourism, Veljko Ostojić, stated that he sees the tourism sector as a light at the end of the tunnel and that by the end of 2020 they plan new investments worth seven billion euros. Of that, 2.2 billion euros would go into the construction of new hotels, while 825 million euros would go into the renovation of existing ones. Other investments are planned for small family hotels, floating hotels, conference centers, etc.