EU candidate countries' financially stable

The financial systems of EU candidate countries Croatia, Macedonia and Turkey are in a good position to resist adverse shocks, according to a new paper from the European Central Bank.

However, the authors also find that the rapid pace of credit growth to the private sector in these three economies has weakened banks' portfolios and increased the credit risks borne by the banking sector.

Also, banks' dependence on foreign debt can prove unfavourable in case of a significant deterioration of the

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