Second Economic Recovery Development Policy Loan

closed

Closed

The Second Economic Recovery Development Policy Loan Program (ERDPL2) to the Republic of Croatia in the amount of EUR150 million (US$206.8 million equivalent) supports measures that aim to enhance fiscal sustainability through expenditure-based consolidation, and to strengthen investment climate. The ERDPL2 supports several long-awaited fiscal and competitiveness reforms to address macro stability and recovery. Fiscal consolidation measures in areas of public administration, social sectors and health will contribute to the deficit reduction, and thus to a deceleration of public debt growth in 2014 of around 0.4 percent of Gross Domestic Product, or GDP. Additionally, through labor market and business climate reforms, as well as innovation and privatization, the operation aims to support investment and growth. However, significant further adjustment will be needed over the medium term to bring down macroeconomic imbalances in the context of the Excessive Deficit Procedure (EDP) and European Union (EU) Macroeconomic Imbalances Procedure (MIP). The European Commission (EC) will continue to monitor closely the needed adjustment. The Government's objective is to support macroeconomic stability and growth recovery through measures that: (i) enhance fiscal sustainability through expenditure based consolidation; and (ii) strengthen investment climate. The ERDPL2 is at the core of Bank's engagement in Croatia, consistent with the Country Partnership Strategy (CPS) presented to the Board on June 27, 2013. It also complements the EU's EDP process.

FY17 - Education,FY17 - Health,FY17 - Industry, Trade and Services,FY17 - Public Administration,FY17 - Social Protection

World Bank Group

Project

Government, Education