Although the government reduced its external debt in this year's first three months by 581.3 million euros to 6.65 billion, the growth of the external debt was mostly due to banks and companies.
Banks' external debt amounted to EUR8.14 billion at the end of March, up 489 million from December, whereas the debt of companies, nonbanking financial institutions and citizens went up EUR230.5 million to 6.03 billion, with direct investment accounting for 2.08 billion.
The external debt grew in April as well, amounting to EUR23.3 billion at the end of the month, up 577 million from the end of last year, according to HNB governor Zeljko Rohatinski.
He has said recently that banks increased their external debt in this year's first four months by EUR513 million. The central bank reacted in mid-May by limiting borrowing abroad, among other things by increasing the rate on compulsory reserves from 30 to 40 per cent.
On the annual level, the external debt at the end of March 2005 went up 11.2 per cent from March 2004, mainly due to banks' borrowing abroad.
Commercial banks increased their external debt by 22.7 per cent, while other sectors increased theirs by 18.8 per cent. Only the government reduced it, from EUR6.82 billion at the end of March 2004 to 6.65 billion at the end of this March.
The government's share in the gross external debt at the end of March 2004 was 33.1 per cent, falling to 29 per cent at the end of this March.
Banks' share in the gross external debt went up from 32.2 to 35.5 per cent on the annual level, while companies' share went up from 24.6 to 26.3 per cent.