If 13.2 billon kuna, which is the amount of a potential debt on the basis of issued state guarantees, is added to the amount of the external and internal debt, the total debt at the end of 2004 came to 111.8 billion kuna, accounting for approximately 54.1 percent of the expected GDP.
The general state debt including the HBOR debt rose by 12.5 billion kuna over the last year, which was a 29-percent rise in comparison to 2003 when the debt increased by 9.7 billion kuna
Analysts of the central bank point out an important difference in the structure of the rise in the debt.
In 2003, the external debt accounted for two thirds of the overall debt rise with the debts on the domestic market making up one third in the rise.
In 2004, 60 percent of the rise in the debt was made on the domestic market, which the HNB analysts ascribe to the government's intentions to rely to a greater extent on domestic sources of financing when debts are taken.
Therefore, in 2004, the share of the internal debt in the overall debt rose by 2.3 percentage points, namely from 41.4 percent in 2003 to 43.7 percent at the end of last year.
On the other hand, the share of the external debt fell from 58.6 percent at the end of 2003 to 56.3 percent at the end of last year.
These trends contribute not only to the growth of the domestic financial market but also to the reduction of the state exposure to foreign exchange risks.
According to figures released in the latest three-month report by the HNB, the rise in overall debt in 2004 was 12.5 billion kuna, with the general state debt rise accounting to 11.7 billion kuna, while the rest of 800 million kuna were debts incurred by the HBOR on the foreign market.
The internal debt of the general state increased by 7.5 billion kuna last year.
The external debt of the general state rose by 4.3 billion kuna, which was by one billion kuna less or 19 percent less than the rise in 2003.
The rise in the foreign debt was the result of debts incurred by the agency or funds, including the debt of the Croatian Highways of 3.4 billion kuna, plus 900 million of kuna incurred by the Republic of Croatia, while local authorities cut their foreign debt by 77 million kuna.
The external debt of the central state came to 55.2 billion kuna, rising 10.2 percent (by 5.1 billion kuna) from the end of 2003.
The internal debt of the central state was 41.6 billion kuna at the end of 2004, which was by 6.9 billion kuna or 19.8 percent more than at the end of 2003.
(1EUR = 7.46 kuna)