Original scientific paper

DEBTS OF TRANSITIONAL COUNTRIES

Pavle Mihalj ; Faculty of Political Science, University of Zagreb, Zagreb, Croatia

Abstract

The debtors’ crisis at the end of the 20th century is a hard reality facing the transitional countries. (And not only them.) However, to borrow or not to borrow, is a false dilemma. In the situation when in most transitional countries the local accumulation is insufficient for financing the economic development and completing the transitional process, the only alternative is borrowing. This is particularly unavoidable when the influx of foreign capital via direct investments is meagre. This is also true for the Republic of Croatia, in which the level of direct investments is, for the time being, very modest. That is why borrowing, particularly from foreign countries, calls for a high degree of caution, a well-thought out approach to borrowing, and the rational use of the loans.

Keywords

Hrčak ID:

32027

URI

https://hrcak.srce.hr/32027

Publication date:

3.6.1999.

Article data in other languages: croatian

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