The HNB Council met to discuss the latest economic and monetary trends, a report on international reserves management in the first half of this year and a report on the situation in the banking system in the second quarter. It also enacted several decisions within its authority.
At the end of August the overall debt was EUR26.79 billion, which was EUR392 million less than at the end of the previous month, or EUR666 million less than at the end of June, when it hit an all-time high.
The government debt has been stagnating over the past two months at approximately EUR6.57 billion. Bank borrowing has declined from EUR10.29 billion to EUR8.97 billion, reaching the level recorded at the end of 2005.
Other sectors have increased their borrowing abroad from EUR7.99 billion to EUR8.53 billion. The difference accounts for direct investments, which are classified as liabilities and which have increased from EUR2.60 billion to EUR2.71 billion.
Compared to August 2005, the government debt was cut 5.1 per cent, the banks' debt went up 11.7 per cent, and the debt of other sectors grew 25.7 per cent, while direct investments, categorised as liabilities, increased 15.6 per cent.