20.August 2010.
Significant budget cuts unlikely, HNB governor says
Croatian National Bank (HNB) Governor Zeljko Rohatinski has said that significant budget cuts are unlikely, considering that this is a pre-election year.
He added that the government had the support neither of the social nor of its coalition partners for serious cuts.That meant that the budget rebalancing likely to take place next week would not result in significant changes for 2010, Rohatinski added.
Rohatinski also commented on the possibility of the government imposing a year-long crisis tax on banks.
"The potential benefits of such a tax would be relatively small, while the potential damage could be very high," he said.
He is worried about a potential capital drain and consequences for currency exchange rates should banks be burdened with additional levies, the daily Vecernji List has reported/Croatian Times.
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