Moody's: Croatia needs reforms

Moody's Investors Service said in a new report that Croatia's Baa3 rating and stable outlook reflects the country's evenly-balanced upside and downside credit risks.

The Croatian government is moving swiftly to introduce long overdue reforms, particularly targeting corruption, Moody's said.

Without such reforms, Croatia faces the possibility of becoming a country with a debilitated growth model and deteriorating debt metrics, given that its ability to continue funding domestic spending with foreign borrowing will be increasingly constrained by its already-high external debt, the agency said.

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