The European Central Bank said on Wednesday it would carry out a stress test of five Croatian banks, a preliminary step in Zagreb’s bid to join the euro zone, Reuters reported.

According to the article headlined “ECB to test five Croatian banks as country aims for euro entry” those banks are Zagrebacka banka, Privredna banka Zagreb, Erste & Steiermärkische Bank, OTP banka Hrvatska and Hrvatska postanska banka.

The results can be expected in May 2020, the ECB added.

“Croatia last month submitted a formal bid to join the European Exchange Rate Mechanism (ERM-2), an early stage on the path to membership of the euro currency,” Reuters reported.

Euro area welcomes Croatia’s bid to join euro waiting room

After Croatia submitted a formal letter of intent to join the European Exchange Rate Mechanism II, Eurogroup president Mario Centeno said that the euro area finance ministers welcomed Zagreb’s move, news agencies reported in early July.

The letter of intent is an early stage on the path to membership of the euro currency, and the commitments offered by Croatia in its letter were welcomed by the bloc’s finance ministers at a meeting on 8 July.

Croatia sent the letter on July 4 to euro area member states, Denmark and EU institutions, making the first formal step towards participation in ERMII, which precedes the introduction of the euro as the official currency.

Enclosed with the letter was an action plan describing in detail the reforms Croatia will carry out before entering ERMII, the Finance Ministry said.