Zagreb Mayor Milan Bandic said on Tuesday that the downgrading of Zagreb's credit rating is a direct consequence of the coronavirus pandemic, the economic downturn and payment of HRK 900 million to the national cohesion fund, adding however that there will be money for capital projects in the city.

If all our money goes to the city’s budghet, the credit rating would not have been downgraded, said Bandic when asked to comment on the lowering of Zagreb’s credit rating.

In this context he recalled that Zagreb had to pay HRK 900 million into the national cohesion fund for underdeveloped areas.

He claimed that the City of Zagreb cannot have a better credit rating that the state and that it has to “float” within that framework.

The mayor, however, highlighted that there will be money for reconstruction, the corona crisis subsidy schemes and for people with minor damage caused by floods but that there will also be money for capital projects.