Croatian National Bank identifies increasing risks to financial stability

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The Croatian National Bank on August 7 published a financial stability report for the first half of 2012, which showed risks are growing stronger and could further deepen the expected contraction of output.

The report said economic forecasts for Croatia had been deteriorating steadily due to a downturn early in the year and tightening financial conditions, with growth for 2012 estimated at –1.6%. Major downside risks to financial stability included contagion from the eurozone periphery, a

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