The Croatian central bank has abolished most of the capital restrictions imposed – to the dismay of local custodians – on foreign investors in 2003. From next week, they will be able to invest in local securities without any restrictions, excluding treasury bills. They will also be free to issue short-term securities on the Croatian market.
“The [remaining] restriction regarding treasury bills does not refer to some 35 countries with which Croatia has ratified bilateral accords,” the central bank vice-governor, Adolf Matejka, told reporters. For other countries, the restriction will remain in place until 1 February 2009, four years after Croatia became an associate member of the European Union.
“In the past, foreigners were not allowed to sell acquired local paper to residents within a year from their purchase, a measure aimed to prevent the inflow of hot money,” explains Sinisa Juric, head of custody at HVB Splitska banka d.d. in Zagreb. “Now those times are over and such transactions are free of restrictions.”