Details

Service: Advisory, Corporate Finance, Transaction/Project Advisory
Type: Business and industry issue, Publication series
Date: 9/23/2010

NF-2010-05- Liberalization of cross-border foreign currency transactions

With effect from 1 July 2010, the provisions of the Croatian foreign currency legislation which prohibited residents, excluding banks, from granting short-term loans with a repayment period of less than 3 months to non-residents, except as part of direct investments abroad, have been abolished.

The abolishment of these provisions should enable Croatian businesses, especially those which are part of multinational groups of companies, to utilize any surplus cash funds for group cash optimization purposes and to yield the relating benefits for their business in the form of financial income or reduced financing expense: so called “cash pooling”.

In order for a Croatian business to be able to participate in international “cash pooling” schemes, the involvement of a Croatian bank to technically facilitate the process is required.

For further information please contact Paul Suchar, Partner, Taxation and Regulatory Services or Tomislav Leko, Manager, Taxation Services.

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