Croatia: Country Partnership Framework FY19-FY24

                                              Chair Summary*

                                                May 2, 2019

Executive Directors welcomed the discussion of the joint IBRD/IFC/MIGA Country Partnership
Framework (CPF) for Croatia for the period from FY19 to FY24. Directors supported the overall
engagement framework, which has been informed by the Systematic Country Diagnostic and
features a strong focus on institutional strengthening.

Directors welcomed the CPF’s overarching goal of building institutions across th ree strategic
areas: (i) enhancing public sector performance and institutions; (ii) preserving and leveraging
natural capital to ensure low carbon growth; and (iii) strengthening market institutions to enable a
dynamic enterprise sector.

Directors noted the important role that the World Bank Group can play in Croatia and
acknowledged that the CPF incorporates the principles of the capital increase policy package.
They appreciated learning about the declining lending trajectory. Directors welcomed the
introduction of clear filters for IBRD and IFC financing, with a primary focus on institutional
development, complemented by providing innovative solutions; catalyzing and leveraging private
sector investment, and contributing to regional and global public goods. Directors also welcomed
IFC’s proposed filters with an emphasis on ensuring additionality and development impact and a
focus on very selective set of interventions. They encouraged greater focus on maximizing finance
for development and the cascade approach in coordination with MIGA, on job creation, public
sector reforms and the most vulnerable segments of the population.

Directors acknowledged Croatia’s progress on macro-fiscal issues and the country’s improving
access to capital markets as evidenced by the recent credit rating upgrade back to investment grade.
They highlighted the importance of regional integration in order to build a competitive and
innovative culture.

Directors also noted the central role of the large RAS program in delivering tangible results in
institutional strengthening and stressed the need for continued engagement through a wide range
of instruments to achieve sustained capacity improvement, including creating better conditions for
leveraging EU resources.




*
    This summary is not an approved record.