Monday, 11 July 2022

Croatian Companies Infobip, Tehnix and Koncar Get Special Recognition

July the 11th, 2022 - The Croatian companies Infobip, Koncar and Tehnix received special recognition at the recently held 17th edition of the Croatian exporters' convention.

As Mladen Miletic/Poslovni Dnevnik writes, at the recently held 17th convention of Croatian exporters, in addition to awards in 19 different categories, awards were also given for achievements and contributions in the digital transformation and green transition of Croatian companies. This special award was given on the occasion of the fifteenth anniversary of the "Golden Key/Zlatni kljuc" award, and it was won by three companies: INFOBIP d.o.o., KONCAR - Elektricna vozila d.d. and TEHNIX d.o.o.

The Association of Croatian Exporters awarded awards to Croatian companies for their advanced and innovative new investments and technologies that contribute to higher production efficiency, lower electricity consumption, all of which should result in a reduction of CO2 emissions in the future.

It was pointed out from various associations in this field that they wanted to further affirm and improve production that reduces the CO2 footprint. Tehnix was founded back in 1992 as a small family business with only a few employees. During its 30 years of existence, it has become the leading eco industry in Europe and the world. Tehnix has representative offices throughout Europe, and in addition to the parent company in Donji Kraljevac, Tehnix has a factory in neighbouring Serbia.

The company is organised, equipped and applies ISO 9001 and ISO 14001 business systems, and more than 500 full-time employees work there with their subcontractors, they have an impressive 60 of their own patents and innovations, and more than 350 of their own products have been placed on the Croatian and global markets. All of the above rightly places Tehnix among the most successful Croatian companies.

"Since its foundation in the early 1990s, Tehnix has grown from a small family business into a leading eco industry on the world map. The business goal of Tehnix is ​​to develop and produce the best technologies that achieve sustainable development and a circular economy. We've developed and manufacture more than 300 machines and equipment for the environment, owing to which we've received a hundred international recognitions and awards. We've also developed the best MO-BO-TO technology for waste recycling, and by applying our technology, municipal waste becomes an economic and energy resource.

With the proper industrial recycling of mixed municipal waste, we obtain 8 new types of raw materials, we also produce eco compost and RDF fuel. MO-BO-TO is the technology of the future that achieves a circular economy and continues sustainable development. We've developed and manufacture special plants for the ecological purification of sanitary municipal water," stated the company's president, Djuro Horvat.

When it comes to the other winning Croatian companies, the main activity of the company Koncar – Elektricna vozila d.d. is the development, production, modernisation and maintenance of rail vehicles and equipment for rail vehicles.

"The key strength of Koncar lies in the fact that our products are the result of many years of continuous development within the companies of the wider Koncar Group's umbrella, which gives us flexibility in adapting to specific customer requirements. Our products comply with the requirements of applicable standards in the field of rail vehicles and their equipment. The lines of our DMV and EMV trains are also certified according to TSI standards, which enables their formal application in different EU member states.

The continuous development of new solutions and products is what we're primarily determined to focus on, and through the application of our own research and development potential, as well as partnership and synergy, we successfully come up with new products and services based on our knowledge. We offer our customers a complete product according to their specific requirements and needs. Following the guidelines on green and digital mass passenger transport, we're now working on the development and application of new solutions for rail vehicles with the use of standby energy that will replace vehicles powered by diesel fuel in the future,'' they stated from Koncar.

The remarkable Vodnjan-based company Infobip, as a global IT and telecommunications company that provides mobile communication services in the cloud for business users, is one of the two Croatian unicorns representing the concept of most absolute success in the demanding business world.

Their ever-increasing list of clients includes social media platforms, internet companies, mobile messaging applications (apps), banks, marketing agencies, corporations, and the list just goes on and on.

Infobip's campus

In addition to its huge contribution and success in implementing the digital transformation, Infobip proved itself once again this year by opening its new campus and the largest innovation centre in the world, Alpha Centauri, which spans a huge area of ​​20,000 square metres here in Zagreb.

"The campus follows global trends, meaning that great emphasis has been placed on green details and sustainability. The campus building itself has an A+ energy class, and the surrounding underground water is used for cooling and heating the working rooms, which results in lower electricity consumption,'' they stated from Infobip.

For more on Croatian companies, make sure to check out Made in Croatia.

Wednesday, 6 July 2022

Golden Key Awards: Best Croatian Exporters Announced!

July the 6th, 2022 - The Golden Key awards (Croatian: Zlatni kljuc) are awarded to the best Croatian exporters each year, and this year, with continued challenges owing to the war in Ukraine which broke out following Russian invasion back in February this year, things continue to be demanding for businesses.

As Poslovni Dnevnik writes, the Golden Key awards for the best of Croatia's largest exporters went to Koncar - Distribution and special transformers, the best of the medium Croatian exporters is Dok-Ing, and the Q agency has been declared the best of the small and micro Croatian exporters for this year.

The president of the Croatian Exporters (HIZ) pointed out that these strange times in which business is being conducted are extremely challenging and complicated due to the coronavirus pandemic and Russian aggression.

"The world's gross export back in 2021, if we're looking solely at goods, fell, but services and the total in that sense actually increased. Exports from Croatia have increased, which means that we're in a good position compared to the rest of the world. The shortfalls that occurred here for the Croatian economy were then offset by a successful tourist season.

The export of goods and services to the EU is traditionally in the negative, and with CEFTA in the plus, whether that refers to goods or services. For years, the structure of our largest trade partners has been the same, consisting of five countries including Italy, Germany and Slovenia," said Darinko Bago. He repeated that Croatian exporters employ the majority of employees and generate the largest share of the country's GDP, and according to the calculations of the Financial Agency (Fina), Croatian exporters contribute on average to the budget and GDP by as much as 40 percent more than other companies.

Prime Minister Andrej Plenkovic also spoke about the challenges currently being faced by the Croatian and European economy, and he emphasised that we are living in a time of several parallel crises, the likes of which have not been seen for decades. The unprecedented coronavirus pandemic halted society as a whole, caused severe damage to the global economy and reduced the global GDP by double-digit values, and now we have a war on European soil.

"The second crisis is the Russian aggression against Ukraine, which disrupted the energy market and consequently led to inflationary trends throughout Europe and the world. The third crisis is the climate crisis, which, connected with the events in Ukraine, leads to a global food crisis. Therefore, he warned, we all have to sit down together and see how to deal with these parallel crises," Plenkovic pointed out as Croatian exporters were rewarded for their efforts.

For more, make sure to check out our dedicated business section.

Wednesday, 2 March 2022

How Will Russian Invasion of Ukraine Affect Croatian Exporters?

March the 2nd, 2022 - With the Russian invasion of Ukraine dominating the world's headlines, harsh sanctions being imposed against Russia and inflation rising, just how will the unjustified attack on Ukraine affect Croatian exporters?

As Jutarnji/Novac/Jozo Vrdoljak writes, the alarming situation on the Russian market is changing from moment to moment as a result of sanctions imposed by many countries following the invasion of Ukraine. The only thing that is certain is that it is uncertain and unfavourable for the business of most Croatian exporters in respect to that market.

In addition, the situation was aggravated by a record devaluation of the Russian ruble, so much so that economic analysts proposed to the Croatian Government to facilitate the operations of Croatian companies and in some way compensate for the losses incurred by this unprecedented situation. At the end of last year, one euro stood at around 80 rubles, and now, according to the official exchange rate, 120 rubles should be set aside for that same amount.

Insiders have claimed that the situation is such that in Russia, banks need to set aside as much as 135 rubles for just one euro. The weakening of the Russian ruble reduces the income of companies and this will certainly affect the business results of companies operating in the Russian market, but this isn't the main problem because this can be solved to some extent by sharing the burden between manufacturers and customers. In any case, it's necessary to compensate for the negative aspects created by the weakening of the Russian ruble.

This is more or less the common opinion of Croatian exporters and others operating in the Russian market, both of those who wanted and those who didn't want to publicly comment on the situation regarding the exchange rate of the ruble. They consider the uncertainty and the situation related to the expulsion of several Russian banks from SWIFT to be a bigger problem. In any case, companies can partially protect themselves from the weakening of the exchange rate, but they must talk to the buyers of their products. They also expect the support of the Croatian Government.

Solinski AD Plastik Group has two factories in Russia and their revenue from the Russian market, depending on the situation, amounts to about 25 percent.

''Our Russian factories produce exclusively for the Russian market and for now we're working according to plan, but there's a lot of uncertainty. Currently, our business is most affected by the weakening of the ruble, but we're trying to manage the situation to minimise the consequences. Unfortunately, we're in a situation over which we don't really have much influence,'' said Marinko Dosen, President of the Management Board of AD Plastik Group.

The Split-based Adria Winch has well protected itself in terms of exchange rates and the collection of completed transactions on the Russian market.

''All of our contracts with Russian partners use euros, we also did something else to protect both us and our partner. We took very high advances for contracted jobs. They amount to about 70 percent. However, the devaluation of the ruble puts our partners in the Russian market at a disadvantage. The question is how they will bridge it. Such a situation cannot make anyone happy,'' explained Milivoj Peruzovic, board member and owner of Adria Winch.

This year, Postirska Sardina was supposed to place about 500,000 cans of its fish over on the Russian market. Davor Gabela, sales director and co-owner of that company, says that the interests of Croatian exporters in the Russian market should be protected, including proper compensation for losses caused by the weakening of the ruble.

''After the New Year, we exported one truck to the Russian market, and I can't say at this moment in time what will happen to the rest of our planned exports. The weakening of the ruble's exchange rate is such that the question is whether our distributor will even accept the conditions imposed by this circumstance. It's always worth exporting if the importer agrees to import because the devaluation of the ruble increases its price due to exchange rate differences. The Ukrainian market is much more important to us because we export more there. This week we were supposed to have a delivery that was stopped because it's almost impossible to deliver the goods to Kyiv. We're going send humanitarian aid there in the coming days,'' Davor Gabela assured.

Gordan Pesic, head of development and business at the well known company Dok Ing from Zagreb, says that for their company, the Russian market is just one of many where they market their products and that it likely won't have much of an effect on their business.

''I agree that the Croatian Government should help Croatian exporters to maintain their positions on the Russian market and compensate them for the losses caused by the devaluation of the ruble,'' said Pesic.

President of the Association of Croatian Travel Agencies, Tomislav Fain, also says that in this situation when air connections with Russia are cut off and Russian planes are banned, it is difficult to think about the arrival of Russian guests and all the accompanying unfavourable circumstances such as the devaluation of the ruble.

''We expect that the war conflicts will stop as soon as possible and that the situation in that region will not affect other markets,'' he said, adding that the most important thing above all is that the war ends. In terms of the the total number of passengers in 2021, Russian and Ukrainian tourists accounted for about four percent of the traffic of Dubrovnik Airport passengers.

''The war going on in Ukraine will certainly have an impact on tourist traffic, but what kind of impact that will is currently very difficult to assess. We, as Dubrovnik Airport, aren't able to do that now. The impact on air traffic across Europe already exists, as parts of the airspace in Ukraine are closed, as is traffic between Russia and the EU. We aren't able to to provide an answer as to how long these restrictions will last,'' said Frano Luetic, the director of Dubrovnik Airport.

For more on Croatian exporters, check out our business section.

Wednesday, 13 October 2021

As Pandemic Ruffled Feathers, Croatian Exporters Remained Strong

October the 13th, 2021 - The ongoing coronavirus pandemic may well have ruffled feathers and shuffled the cards in a way nobody could have ever expected, but Croatian exporters have remained among the most resilient of all.

As Poslovni Dnevnik/Marija Brnic writes, Croatian exporters, when the line was drawn, were not only resilient but also lively and quick in the unprecedented conditions of the coronavirus pandemic. Many new "players" entered this scene, but in some sectors, especially in tourism and the oil business, the blow was severe and left a visible mark on the list of the 100 largest Croatian exporters.

In fact, it is only now that the criteria for what is considered export revenue have been questioned, which has been set in recent years since the First Gas Company (PPD) broke through to the very top of that scale. According to the criteria of Dun & Bradstreet, these are revenues from sales made abroad, and according to them, this time on the annual list of the largest Croatian exporters, the national oil company INA slipped down to second place for the first time. The leadership was taken over by PPD, which will say for itself that it is not a classic exporter.

"Although it's very nice to be on the list of the largest Croatian exporters, in previous years we've repeatedly explained that in our case it isn't about exports but about the income generated from trade abroad, on the single market," they pointed out from PPD. They noted the fact that the Republic of Croatia doesn't have enough of its own gas even for its own needs, so PPD cannot "export" it abroad. And as the European Union's single market is liberalised and open to all participants, every Croatian company can trade in the countries of the European Union and try to make money on this large market.

''PPD's experts have the necessary knowledge and experience, they know the markets well, they have access to gas exchanges and financial instruments for trading and hedging. All this allows us to successfully compete with other participants in the common EU market, and we perform our operations from our offices in Vukovar, Zagreb, Budapest and Lugano with young, local experts who are ready to learn and adapt to dynamic EU markets. We also employ European experts in our companies abroad. The combination of these experiences and knowledge that we manage from Zagreb and Vukovar has so far proved to be very good,'' said Pavao Vujnovac, President of the Board of PPD.

Crucial to revenue growth last year was the fact that the coronavirus pandemic didn't reduce gas consumption, on the contrary, a large number of consumers used gas because prices across the global market in 2020 were at historically low levels. "In such conditions, we've successfully positioned ourselves in the wholesale markets in the region and increased our sales," said Vujnovac.

This year, on the other hand, is completely opposite to last year, with record high gas prices, which wasn't at all expected, but as the first man of PPD added, his business is managing without disturbances even in these totally opposite conditions. Revenues this year will be significantly higher than they were last year as a result of extremely high gas prices on the global market, but also owing to a further increase in sales. This also indicates that it will be a big challenge for INA to skip PPD on Dun & Bradstreet's scale.

INA's export results over the last two years have been largely monitored through the prism of crude oil exports to neighbouring Hungary, where INA's refining has largely shifted after the closure of its Sisak refinery. Howevever, like everyone else in the oil business, they will say that last year was generally "extremely challenging" for them. Unlike gas, demand for their goods and services in some periods in 2020 fell by 30 to 50 percent compared to the same period in 2019, while, despite the partial recovery of the oil market in the second half of 2020, oil and gas prices were (on average) lower by more than 30 percent in comparison to the previous year.

INA's export business was also marked by reduced demand, with an annual decline of 37 percent. Over the last five years, this is the lowest export result of the largest Croatian company. Although the first half of this year was marked by somewhat more favourable circumstances, and demand in key markets rose almost to pre-crisis levels, INA CEO Sándor Fasimon cautiously says that economic recovery is still uncertain, and that it is clear that the market situation won't return to pre-pandemic levels for some time yet.

"The fact is that the coronavirus pandemic still isn't over and it's difficult to predict future trends, so we can't just sit back and relax now, especially when the transformation processes related to climate change are taken into account. Accordingly, INA is continuously working on improving business efficiency. We're working on plans to expand in export markets, and with the construction of a plant for the treatment of heavy residues in the Rijeka refinery, which is a project worth four billion kuna, we'll have to strengthen our presence in export markets.

We monitor market and global changes and at the same time expand our value chain and create new opportunities. We're guided by clear strategic development guidelines in accordance with the updated integrated long-term strategy of the MOL Group's SHAPE TOMORROW 2030+ initiative and our goal is to operate in a sustainable way and successfully respond to the challenges posed by new energy sources, environmental issues and technological progress,'' said INA's Fasimon.

Only six companies generated revenues of more than one billion kuna last year, which is a significant decrease compared to the year before, when there were twice as many strong company names in those ranks. Below that limit, in a coronavirus-dominated environment, the largest Croatian hotel companies and the national airline Croatia Airlines, which was struggling long before the pandemic struck, as well as large companies from the energy sector and the automotive industry, have descended drastically.

Among hotel companies, the most affected are Porec's Valamar Riviera and Plava laguna.

In addition to the tourism sector, the public health crisis hit the automotive industry hard in 2020, meaning that one of the largest Croatian exporters coming from that industry, Ad Plastik from Solin, also left the "billionaires club" last year. The management of Ad Plastik is cautious in assessing whether this will be temporary or not, because, as their CEO says, the demand for cars is growing compared to the first part of last year, but it will take some time to reach pre-pandemic figures. According to estimates by the European Automobile Manufacturers Association ACEA, this year's overall car sales growth is expected to be 10 percent above last year's, but it will still be below pre-pandemic results.

This year, an additional "challenge" for car manufacturers is the lack of semiconductors, which slows down production. From the experience of Ad Plastik, the Russian market is recovering more quickly, where it is also present, and where the lack of semiconductors isn't yet being felt. The company's CEO is cautious in his assessments, but generally holds the view that a slight but sure shift towards market recovery is noticeable.

For more on Croatian exporters, make sure to follow our business section.

Tuesday, 7 September 2021

How Will Croatian Schengen and Eurozone Entry Help Exporters?

September the 7th, 2021 - The country's many exporters are set to have life made that bit easier for them with Croatian Schengen entry on the horizon, further aided by the country finally entering the Eurozone.

As Poslovni Dnevnik/Darko Bicak writes, Minister of Economy and Sustainable Development Tomislav Coric recently said that for small and open economies, such as that boasted Croatia, exports are a prerequisite for development and survival.

"The country's GDP has been growing for years now, and of late, exports have been one of the main factors when it comes to economic growth and economic recovery. Exports recorded very good results even during pandemic-dominated 2020. This year, we've been recording a large recovery in terms of exports with 60 billion kuna, which is 11 billion kuna more than in pre-crisis 2019,'' said Coric.

He added that we must be careful in this analysis of the growth of the value of Croatian exports, because part of it is related to global inflation.

Minister Coric also pointed out that the achieved results are due to about 20,000 Croatian exporters who are the largest employers in the country, who also generate the largest share of total income and investments. He stated that both EU and national funds are a major source of funding for innovation and competitiveness of the domestic economy in the wake of the Green Plan.

"I'm aware of the challenges that Croatian exporters have been facing for years, and the Government is making great efforts to overcome bureaucratic obstacles for Croatian businessmen, and especially exporters, for greater growth and exports. By joining the Eurozone in two years, we'll take an additional step forward in eliminating exchange rate risks faced by Croatian entrepreneurs when doing business on our most important market - the single market.

In addition to the above, Croatian Schengen entry will be a benefit for all of the country's exporters because it will simplify and speed up mobility,'' concluded Minister Coric.

For more on Croatian Schengen and Eurozone entry, make sure to follow our politics section.

Thursday, 2 September 2021

Golden Key Award: Best Croatian Exporters of 2020 Announced

September the 2nd, 2021 - The Golden Key Awards are upon us, and with the horrendous pandemic dominated year of 2020 quite comfortably behind us, we can look at how Croatian companies performed under the most dire of economic circumstances. These are the best Croatian exporters of 2020.

As Poslovni Dnevnik/Darko Bicak writes, Koncar - Distributive and special transformers/Distributivni i specijalni transformatori was named the best of the large Croatian exporters for last year. The Golden Key Award, which is being awarded for the fourteenth time in a row, was presented to them at the sixteenth annual convention of the Croatian Exporters' Association which was held in Zagreb on Wednesday.

In the category of medium-sized Croatian exporters, the winner was the astonishing Infobip from the Istrian town of Vodnjan, while the software company Axilis, which develops online betting platforms, was declared the laureate among micro and small companies.

''Croatian exporters are a shining example of the Croatian economy, but they are forced to work in much worse conditions than official statistics show and we must be concerned about that,'' said Darinko Bago, the president of the Croatian Exporters' Association at the Convention of this interest group.

"As this is a turning point, a year full of crisis, 2020 was problematic for most companies, and all comparisons of business and exports are made with pre-pandemic 2019. Back in 2019, there was a decline in exports compared to the year before. We recorded a drop in trade by 11 percent and services by 20 percent. The reason for this is the bipolar world, which, in addition to having a political plan, also has great implications for the economy. Now, the situation with Afghanistan has reignited and we're yet to see how it will affect the global economy," Bago warned.

Minister of Economy and Sustainable Development, Tomislav Coric, said that for small and open economies, such as that boasted by the Republic of Croatia, exports are a prerequisite for development and basic survival.

"Croatian GDP has been growing for years, and lately, exports have been one of the main factors in economic growth and economic recovery. Exports even recorded very good results in 2020, because although numbers did fall, they fell much less than the general GDP did. This year alone, we're recording a large recovery in exports with numbers like 60 billion kuna, which is 11 billion kuna more than in the pre-crisis 2019 ", said Coric, added that we must be careful in this analysis of the growth of the value of exports, because part of it is related to global inflation.

For more, make sure to follow our dedicated business section.

Sunday, 13 September 2020

Croatian Exporters Convention: Six Percent Growth for Croatia in 2021?

There will be no new economic closures because the domestic economy couldn't survive another ‘lockdown’, and funds and positive expectations that will not reduce consumption could play a key role in getting out of the crisis faster, these were some of the key messages expressed by Croatian exporters at a recent convention held in Zagreb.

As Poslovni Dnevnik/Ana Blaskovic writes on the 12th of September, 2020, half a year after the outbreak of the coronavirus pandemic, Croatian exporters, policy makers and experts are becoming cautiously more optimistic about the future of the domestic economy, believing that the worst is over and that there will be no new economic closures, and that stronger growth rates await us in 2021.

the impact of the coronavirus crisis was a topic of discussion at the 15th Convention of Croatian Exporters in Zagreb. Initially pessimistic about the scale of the coronavirus crisis, Marijana Ivanov, a professor at the Faculty of Economics in Zagreb, is more optimistic today.

''I don’t think we'll return to pre-coronavirus levels quickly and easily even though I'm not as pessimistic as before. The pandemic will leave profound effects globally. I believe that recovery will take the form of the letter K: some activities will recover faster, and others will be followed by a decline,'' said Professor Ivanov. She added that it is fortunate that the decline in exports of goods wasn't that strong, but she warned that, like everything else, the figures should be taken with a grain of salt, noting that the recovery in August no longer has the same dynamics as before, and we're now entering an uncertain autumn. She believes that the economy cannot survive another ‘lockdown’ and that consideration should be given to redefining self-isolation measures, the costs of which are borne by people and businesses who are already all experiencing lower incomes for the most part.

Let's unburden the economy

The first spring wave of the coronavirus was successfully thwarted at Solin's AD Plastika, a company that was awarded the Golden Key for the best large exporter back in a much more stable 2019.

The company, which employs 3,000 people and generates about a billion kuna in annual revenue, is working at full capacity again after the lockdown, fulfilling its obligations, and speaking about the future, the company's leader Marinko Dosen pointed out that there are no plans for possible cuts. He bases his optimism on the fact that everything they do is in line with deadlines and contracts. When asked what they need from the state as a company, Dosen didn't hesitate too much: “We need to work on the burden placed upon us. Today we have a negative spiral of an expensive state and a small base that fills the budget. The state has reacted fantastically this year, selective measures are still needed for help,'' he stated.

The President of Croatian Exporters, Darinko Bago, praised the government's measures for preserving jobs, assessing them as timely and well-designed, and gave an excellent assessment of the central bank's measures for preserving financial stability.

''I'm optimistic about the pandemic, we'll dance with the epidemic like a bear until the vaccine comes, then it will become our past, but it's important that people who make investment decisions are aware of the "fragility" of the situation and will work on things so such incidents no longer affect the world,'' said Bago. He sees a role in getting out of the crisis faster in venture capital funds, which are lacking in Croatia because banks are afraid of losses in uncertain circumstances. ''We have to develop funds if we want to be a country that wants to get out of this crisis, there are pension funds that have to act in this situation,” Bago noted, highlighting an example of the importance of institutional investors in the US.

Speaking of expectations, central bank governor Boris Vujcic said he is neither pessimistic nor optimistic. "I'm a realist. I think what I state based on the numbers is the best possible assessment of the real situation. Lately they have started calling me an optimist, probably because the atmosphere has been created to lead people to believe that things will be much worse, but I don't believe that. We see a strong recovery in industrial production and construction, with a sharp decline in services, but that decline is smaller than we expected in the spring,'' said Governor Vujcic, expecting 6 percent GDP growth next year, reaching the level of economic activity in 2015 after that.

Optimism, but also caution...

The Croatian National Bank's main man also attended the 15th Convention of Croatian Exporters and pointed out that banks in the current crisis (unlike the one which struck back in 2009) aren't the cause of the problem but are instead part of the solution, emphasising with satisfaction their good capitalisation and liquidity.

"Banks have secured moratoriums in line with the regulatory changes we've made possible, but they can't be asked to lend if they estimate they won't be able to collect the loan," Vujcic warned.

''There are countless examples in the world where negative forecasting has perpetuated negative activities. We also had "geniuses" here who said that everything is awful and that 400,000 unemployed people are waiting for us this autumn. Things should be positive, but realistically positive about the future, although there must be objective criticism. We have 22 billion euros at our disposal from the EU in the next seven years, we must see it from that perspective,'' stressed the Minister of Economy and Sustainable Development Tomislav Coric.

"In the coming period, Croatia needs to take a somewhat more liberal view of production by banks. With the support of institutions such as HBOR and HAMAG-BICRO, we can increase the capacity and increase the competitiveness of Croatian companies,'' added Coric Such thinking is shared by his colleague from the Faculty of Economics, who is also a political opponent, SDP economic strategist Josip Tica.

''The key thing is to enable the formation of expectations. "If people's expected income decreases, then they reduce their consumption, and that shock moves through the entire economy through the postponement of consumption and investment, which reduces GDP," explained Tica.

In the conditions of record high liquidity in banks, he believes that what is missing for the successful transfer of money into the real economy are partial guarantee schemes.

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