Banking Crisis 1998–1999: Dubrovačka and Croatia Banka Bailouts
ᴵⁿ ᵗᶦᵐᵉˢ ᵒᶠ ᶜˡᶦᵐᵃᵗᵉ ᵉᵐᵉʳᵍᵉⁿᶜʸ https://climateclock.world/ The late 1990s marked one of the most turbulent financial chapters in modern Croatian history. As the country transitioned into a market economy, it faced growing pains that exposed deep flaws in the banking sector. The collapse of major banks such as Dubrovačka banka and Croatia banka forced the state to step in with costly bailouts, reshaping public trust in financial institutions. The bailouts were not just financial rescues; they were warnings about the fragility of Croatia’s post-transition economy. Background: A Fragile System In the years leading up to the crisis, many Croatian banks expanded aggressively, often without proper risk management or oversight. Dubrovačka banka, once a strong regional institution, and Croatia banka, among the country’s largest, both became entangled in risky lending practices, political connections, and internal mismanagement. When non-performing loans piled up and liquidity dried out...