The newly formed state was divided into an Italian and a German interest zone. Hungary also annexed the territories of Međimurje and Baranja. The NDH ceded the majority of the Adriatic coast to Italy, along with all the islands, with the exception of Pag. The territory of the NDH was divided into 22 great parishes. Due to the Ustashe terror and the rise of the partisan movement, the internal stability of the state kept worsening.