According to reports from daily newspapers, a meeting was held on Wednesday between Prime Minister Zoran Milanović, representatives of the central bank, Finance Minister Slavko Linić, and business bankers.
According to information from Večernji list, the top Croatian authorities, the Prime Minister and the President, have been warned that the ruling in the ‘Franak’ case could have severe consequences for the legal and financial security of the country.
According to Jutarnji list, it is unclear what the banks specifically requested, but one source familiar with the gathering stated that the meeting was ‘informative, although marked by high tones.’
It is reported that Minister Linić was the most upset as he perceived the banks’ stance as a threat. The banks assessed that they would not be able to finance all the needs of the state, to which the Finance Minister responded that in that case, he would borrow abroad.
The state is currently refinancing old debts, having issued two bonds (750 million euros and 2.75 billion kuna), and a so-called club loan of 755 million euros, which leading banks approved three years ago, is also due.
