The kuna, also written as HRK, is the official currency used in Croatia. Meaning "marten" in Croatian, the kuna is broken into 100 lipa, subunits meaning "linden." The kuna, contrary to popular belief, holds no relation to the various currencies entitled "koruna"; instead, the currency is based on the use of marten pelts as units of value in medieval trading.
The kuna was first implemented in June 1994, soon after Croatia gained its independence. Much controversy surrounded the currency name choice, as beforehand, the Fascist puppet Independent State of Croatia had used this same name during the Second World War. Given the legitimate root of the name choice (i.e. the historical use of marten pelts), however, the name stuck and remains in use today. The kuna is regulated by the Croatian National Bank, and is minted by the Croatian Monetary Institute.
Sovereign Ratings for Croatia
Sovereign credit ratings play an important part in determining a country's access to international capital markets, and the terms of that access. Sovereign ratings help to foster dramatic growth, stability, and efficiency of international and domestic markets.
What does it look like?
Croatia has been a parliamentary democracy since it adopted the Constitution in 1990. The republic of Croatia is led by the President, Predsjednik, who serves as head of state and is elected directly for a five-year term. The President has several duties, including appointing the Prime Minister (under approval of the Parliament), serving as commander in chief of the armed forces, and helping govern foreign policy.
The Croatian Parliament, Sabor, is a unicameral legislative body of up to 160 representatives, each of which are elected by popular vote for four-year terms. The Croatian Government, Vlada, is headed by the Prime Minister who has two deputy prime ministers and 14 other ministers; each of these ministers assumes responsibility of a particular sector's activity.
The executive branch of the government is in charge of legislative and budget interests, as well as enforcing the law and guiding foreign and internal policies of the republic. The judicial branch is three-tiered, comprised of the Supreme Court, county courts, and municipal courts. On matters regarding the written law, i.e. the Constitution, the Constitutional Court makes chief rulings.
President: Stjepan Mesic
Prime Minister: Ivo Sanader
Croatian National Bank: Zelijko Rohatinski
Currently, Croatia uses the kuna as the unit of currency. Croatia, however, anticipates talks regarding their joining the European Union. As a candidate country of the European Union, Croatia has the potential to play a pivotal role in the value of the euro against the U.S. dollar. If Croatia does decide to join the European Union, the transition and political entry into the eurozone would take place in 2009 or 2010.
Key Economic Factors
Industrial Production: The industry represents about 20% of Croatia's GDP and industrial goods makes up about 97% of Croatia's total exports. This sector is constantly changing and the effects of this restructuring are clearly evident in a number of different areas. There has been a shift from privatization to the strengthening of exports to western markets. There has been an emergence of new products and modifications to existing products and processes. New ways to satisfy environmental protection conditions have been found. Also, quality levels have been increased plus many other developments.
The Costa Rican colon, also denoted by CRC, is the official currency of Costa Rica. The colon is subdivided into 100 centimos, but coins are rarely used anymore due to inflation. In 1997, new coins were issued to replace the older coins.
- Agriculture: 63.5% of Croatia's 3.18 million hectares of agricultural land is cultivated
- Famous products: slavonski kulen (famous Slavonian salami), dalmatinski prsut (Dalmatian smoked ham), istarski prsut (Istrian smoked ham) and paski sir (cheese from the Island of Pag)
- Fishing: Through 18 factories for fish processing, Croatia produces 15,000 tons of various fish products per year. Mariculture, i.e. fish and shellfish breeding, is becoming increasingly important. A newer production line, tuna breeding for the Japanese market, was launched in 1997.
- Trade: Almost 40% of Croatian economic entities engage in distributive trade. This activity employs 16.7% of the total workforce and generates about 10% of Croatian GDP, which makes it extremely important for the entire economy.