"The firm's recent independent research report on Croatia has been misinterpreted. There was no recommendation for investors to 'pull out of Croatia'," Christian Keller, head of Research for Emerging Markets for EMEA at Barclays Capital, was quoted as saying in a statement issued on Wednesday.

Keller is one of the authors of the said report on Croatia, published on 27 February.

"This report recognises at the very outset the fiscal consolidation efforts of the new government," Barclays Capital stated.

"The report also points out that the budget for 2012 reduces expenditures and lowers the deficit. The report notes that the shift from labour taxation to consumption taxation is a good step to increasing competitiveness," the bank's investment banking division said in the statement.