Deputy Prime Minister and Finance Minister Ivan Suker said that every downgrading of a country's credit rating was worrying, but added that capital markets had a much better opinion of Croatia than rating agencies did.
"Every downgrading of the credit rating is worrying, but what happened to Croatia is something that has happened to everyone before. This, however, tells us, just like the IMF mission, that structural reforms must be implemented," Suker told reporters after a Cabinet meeting.
Suker made the statement after he was asked if the downgrading of Croatia's credit rating by Standard & Poor's was worrying. S&P lowered Croatia's long-term credit rating this week from BBB to BBB-, citing a deteriorated fiscal position and considerable dependence on foreign funding.
"Far from it that it's not a warning, but I repeat, certain structural reforms must be implemented," Suker said.
When asked if, as a result of the downgrading, interest rates on foreign borrowing would be higher, Suker said it was "a relative thing". "The market has a far better opinion (of Croatia) than rating agencies do," he said
