PM: Raising the outlook from stable to positive is the step towards returning credit rating to the investment rating

The Standard & Poor's (S&P) agency reported on Friday that it had affirmed 'BB' long-term and 'B' short-term sovereign credit ratings on Croatia and revised the outlook to positive from stable.

"For the second time so far in the term of this cabinet, the S&P agency has uplifted Croatia's outlook. Nine months ago, it was revised upward from negative to stable and now from stable to positive. This is an excellent step towards what we want, and that is the reinstatement of the investment grade rating," Plenkovic said after a ceremony opening the European Week of Sport at Jarun Lake in Zagreb.
 

In this context, Plenkovic pointed out economic growth and wise fiscal consolidation, resulting in deficit reduction.
 

"The positive outlook reflects our expectation that Croatia's economic expansion will continue, helping further consolidation of public finances, while external ratios will benefit from continued deleveraging and the potential fallout from the situation around Agrokor remains contained," this international ratings agency stated.
 

S&P expects Croatia's economy to grow by 3% this year, "underpinned by robust domestic demand and strong exports, helping the government to maintain a stronger budgetary position than before and continue reducing its still sizable debt burden."

Plenkovic told reporters the law's provisions "were such that they could be activated only if the company wanted (the law) to be activated. There was no pressure, I guarantee you, certainly not from the government."
 

Asked to comment on Todoric's claim that the Agrokor food and retail group was unlawfully taken from him, he said the government had been accused in recent months "of protecting one man, that we want to shift onto taxpayers the debt of a private company, and now it seems all those accusations were incorrect."
 

He said the government's policy and only interest had been to protect the interest of Croatia's economy and financial system. "We succeeded in that thanks to the law we adopted, the measures that were taken, the fresh capital," he said, adding that jobs were saved and "Croatia's supplies were maintained in the most successful tourism season."
 

Plenkovic said the government respected the rule of law, that Lex Agrokor was passed in line with the constitution and that he did not fear possible lawsuits. "My interest is the stability of Croatia's economy, the well-being of all citizens. What we did was... the only right and possible thing at the time," he said, adding that Agrokor had reached out to the government and not vice versa.
 

He said parliament would decide whether to form a commission of inquiry for Agrokor. "We are absolutely for investigating everything. What we don't want is the work of an inquiry commission to impact the work of the judiciary."

Text: Hina