MILAN, July 10 (Class Editori) - As requested by Croatian authorities, the Ministers of Finance of the Eurozone member states, the President of the European Central Bank, the Ministers of Finance and the governors of the central Banks of Denmark and Croatia have taken the joint decision of including the Croatian Kuna in the exchange rates mechanism (ERM II). The Commission has been involved and the economic-financial committee has been consulted.
In October 2017, the Croatian government presented a plan in order to join the European single currency, which provides for the entry of Croatia in the exchange rates mechanism (ERM II) by 2020, as a prerequisite for a full adoption of Euro in the future. The central rate amounts at €1 equivalent to 7,53450 Kune, with a band exchange equal to about 15%.
The agreement on the entry of Kuna in the ERM II is based, moreover, on the Croatia’s commitment to join at the same time the Banking Union and the ERM II and to implement a series of measures by the Croatian authorities which have been described in their letter of intent dating back to July 4, 2019 and are extremely important for a regular entry in the ERM II.
These measures concern the following six sectors: Banking Supervisors, macro-prudential framework, anti-money laundering framework, collection, production and release of statistics, public sector governance and reduction in financial and administrative charges for economy.
The European Central Bank has also announced the establishment of a close cooperation with the Hrvatska narodna banka (Croatian National Bank). Moreover, in the country, one of the main banks- Zagrebacka banka- belongs to Unicredit group.
In addition, the agreement on Kuna’s participation to ERM II has been followed by the Croatian Authorities strong commitment to pursue suitable economic policies with the aim of preserving economic and financial stability and reaching a high level of sustainable economic convergence. Croatian Authorities have been committed to implement specific policy measures related to the anti-money laundering framework, business environment, state-owned enterprises and bankruptcy proceedings framework.
Authorities, together with the responsible bodies of the European Union, will closely follow the developments of the macroeconomic policies and the implementation of such measures in the appropriate frameworks.
Not only Kuna has entered in the ERM II but also the Bulgarian lev, whose central rate amounts at €1 equivalent to 1.95583 lev, always with a band by 15%.
(Source:Class Editori)
Notice: No person, organization and/or company shall disseminate or broadcast the above article on Xinhua Silk Road website without prior permission by Xinhua Silk Road.
A single purchase
