November 11 (SeeNews) - Croatia's central bank governor Boris Vujcic has said the country could possibly join the Eurozone already in 2023, local media reported.
"However, similar to previous instances, I do not wish yet to speculate on dates," news daily Jutarnji List quoted Vujcic as saying in an interview over the weekend.
In July, the Croatian authorities sent a letter of intent to join the European Exchange Rate Mechanism II (ERM II), the first formal step towards adopting the euro.
"We are now focused on meeting the obligations we have set to ourselves in the letter of intent to enter the ERM II. I believe we will complete this part of the job on time and will meet the ERM II entry conditions in the middle of next year," Vujcic said.
The government in Zagreb has also expressed hopes that Croatia will join the ERM II in about a year, while the whole process of joining the euro area is expected to take at least four years to complete, including the two-year mandatory stay in ERM II.
ERM II ensures that exchange rate fluctuations between the euro and other EU currencies do not disrupt economic stability within the single market. It also helps non euro-area countries to prepare for joining the euro area.
Back in May, Croatia also formally requested the establishment of close cooperation with the European Central Bank (ECB) on the oversight of the country's banks under the Single Supervisory Mechanism (SSM). Establishing close cooperation on the supervision of banks is part of the steps the country needs to make on the path to ERM II entry.
Croatia has said it aims to simultaneously enter into close cooperation with ECB and into ERM II.
The SSM aims to ensure the safety and soundness of the European banking system, to increase its financial integration and stability, as well as to ensure consistent supervision.