INSTITUTIONAL FRAMEWORK FOR PUBLIC DEBT MANAGEMENT IN THE EU – WITH THE SPECIAL FOCUS ON CROATIAN CASE

Public Debt Management for a long period plays an important role in the capital market, and the introduction of the euro and financial crisis have strengthened the role of institutions for public debt management. The aim is to show the importance of the institutional framework and the organization of the public debt. In Europe there is increased awareness of how necessary it is possible to become independent institutions for public debt management in order to ensure professionalism (in the management of extremely large state obligations which is especially important in times of crisis). Public debt management is important for the financial stability and institutional status should take into account all relevant factors of public debt as well as the objectives of public debt management, organization, debt holders, issuers of debt and debt trading practices. This paper mainly analyzes the institutional framework of public debt management. The concept analysis is based on a comparison of the institutional framework in the European Union. The debt crisis and the global financial crisis. stressed the importance of a professional debt management that can best be achieved by establishing an independent institution for public debt management. Policymakers are not always willing to reform and improve the management of public debt until the crisis or the debt has become unsustainable. The paper concludes that the choice of an independent institution for the management of public debt is in reality the best way for the successful management of public debt.