We Have No Issues with the State Audit Office Entering the HNB

We have done a lot in terms of business transparency. Various media reports have emerged due to transparency as the HNB has published all its procurements down to the last detail and kuna.

The governor’s advisor for fiscal policy, Ante Žigman, is quite satisfied with the budget for the remainder of this year. The deficit has been pushed below three percent of GDP, suggesting that in this and the next year, the deficit will cumulatively decrease by seven to eight billion kuna. This is a good premise for substantial changes on the expenditure side. However, he emphasizes that first, legal prerequisites need to be established, specifically changing laws so that rights can be restricted/reduced without fear of legal proceedings. However, developments in the Parliament are less promising. The ruling coalition is increasingly vocal with demands for the HNB’s operations to become more transparent.

• The HNB’s report in Parliament did not go smoothly again this year. Why is it always the same story?

− The HNB has fulfilled all its legally mandated tasks, including those not related to the main goal of maintaining price stability. Croatia continues to maintain financial stability even while many EU countries have spent billions of euros to stabilize their financial systems. Therefore, the HNB has fulfilled all its legally prescribed tasks.

• This time, legal changes are being sought in Parliament aimed at including the review of operations under the auspices of the State Audit Office.

− Public control of the HNB is not as small as it may seem at first glance.

• So, it mainly comes down to Parliament and public reporting?

− There are several segments of control. Audits are conducted in accordance with European trends. A commercial auditor selected through a public tender is confirmed by the parliamentary Finance and Budget Committee. Every year, the detailed findings of the selected auditor are received by the parliamentary committee, which can ask additional questions at any time. The HNB publishes a report twice a year that it presents in Parliament; we have the highest number of published publications, from financial stability reports, bulletins, semi-annual and annual reports to bulletins about banks. The HNB provides so much information about its operations to the public, so if an additional audit by the State Audit Office needs to be conducted, the HNB has no issues with that. However, the auditor should also see and compare how other central banks operate. The HNB has transferred two billion kuna to the budget from profits made in the last four to five years. We have done a lot in terms of business transparency. Various media reports have emerged due to transparency as the HNB has published all its procurements down to the last detail and kuna.

You can read the entire interview in the new issue of Lider.