Croatia under threat from falling growth and rising debt

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The Croatian National Bank identified the country's flagging economic growth and escalating public debt as the main threats to its financial stability in a report released yesterday.

Between December 2012 and July 2013 the projected growth rates fell both at home and among the country's main European trading partners. The national bank also stresses that Croatia has suffered relative to its neighbours.

"A comparison of risk premiums shows that the markets perceive Croatia as being attended by

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