Primorac on his way out: I am leaving the state finances in a “fairly good” condition

In a statement to the media after the Government session, Primorac thanked his team at the Ministry of Finance, his colleagues in the Government, that is, all ministers, and of course the Prime Minister, for the support and cooperation in numerous projects and reforms, above all for the trust shown.

He also thanked the media for the correct reporting and monitoring of the work of the Ministry of Finance and the Government in the past three and a half years, when he was the minister.

The government nominated him for the position of vice-president of the European Investment Bank (EIB), and Primorac said that this is an opportunity that “really rarely opens up” and that will enable the Republic of Croatia, i.e. he, as a member nominated by the Republic of Croatia, to participate in the work of the Governing Council of the EIB, a bank that, with its financial potential, has contributed to the strengthening of investments, the development of infrastructure, the capital market, mobilization of savings and general economic growth and development of EU member states. as well as Croatia.

He announced that he was leaving the state finances in a “fairly good” condition, with a stable fiscal and macroeconomic position. At the same time, he pointed out that the share of public debt in GDP and the budget deficit of the consolidated general government are within the Maastricht criteria, there is also a historically high credit rating, with “fairly good” trust from the international financial public.

The Ministry of Finance is in a “stable state”

In the operational sense, he said, the state budget for this year has been adopted, it must now be executed, which is the situation that remains with the new Minister of Finance, Tomislav Ćorić. He believes that Ćorić he has enough time to get to know all the employees in the ministry and take over the responsibility and continue to perform it responsibly.

In this, he wished him much success and happiness, as well as to all the employees of the ministry and the Government.

He said that he also took over the Ministry of Finance in a “disordered state” in terms of personnel, and he is leaving it in that state. “We have a fully functional and strong team that is capable of implementing even the most complex reforms,” ​​he said.

In terms of fiscal position, Primorac found a less enviable situation, given that after the coronavirus pandemic, the share of public debt in GDP was over 80 percent. A significant step forward has been achieved in this segment, considering that it is now slightly above 56 percent, while Primorac notes that economic growth also contributed to the reduction of this share.

During his mandate, numerous projects were initiated and implemented, and Primorac believes that they will continue, such as the issuance of “people’s” bonds and treasury bills.

There is also a reform of state property management and tax reform, and Primorac says that the results of these steps will be seen in the medium term.

Entry into the OECD this year

Tomorrow in Zagreb, at the thematic session of the Government, OECD Secretary General Mathias Cormann will present II. Economic overview of the Republic of Croatia, and when asked by a journalist when he expects to join that organization, Primorac said that it should be this year.

He pointed out that Croatia should have fulfilled a number of criteria on that path and “work and amend” a number of legal instruments.

When the wordč about advances and reforms from the scope of the Ministry of Finance, they primarily relate to the management of state-owned enterprises, which is why a new legislative framework was adopted. There are also strides in the capital market, which is why a strategic framework for its development was adopted for the first time. Primorac singled out the establishment of a legislative mechanism for checking foreign direct investments.

“I am glad that we have completed all these processes and that, as far as the Ministry of Finance and most other departments are concerned, we are ready to enter the OECD. So, the situation is settled and we expect entry, of course, this year,” said Primorac.