Despite a good yield from the 2010 tourist season revenue, Croatia still faces a 2 billion euro budget deficit, prompting speculation about IMF intervention.
"The IMF did not initiate any talks with Croatia, but if the call comes from Zagreb, the IMF will enter talks," a spokesperson for the Fund, Simonetta Nardin, told the Croatian weekly Globus.
The IMF still maintains a strict policy that impacts a country's social and welfare policies. It usually recommends freezing wages and pensions, cutting public spending and improving financial discipline.
In light of the global recession, however, it has sought to improve the conditions for financial assistance and make itself an attractive business partner for governments struggling with economic woes.
News source: SETimes.com link: article
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