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CROATIA EXPECTED TO PAY OFF 3.3 BILLION OF FOREIGN DEBT IN 2004

ZAGREB, Jan 14 (Hina) - In 2004, Croatia is to pay back over 2.5 billion US dollars of the principal of the external debt, and USD778 million of interest rates of the debt, which together comes to 3.3 billion.
ZAGREB, Jan 14 (Hina) - In 2004, Croatia is to pay back over 2.5 billion US dollars of the principal of the external debt, and USD778 million of interest rates of the debt, which together comes to 3.3 billion.#L# According to the latest data issued by the Croatian National Bank (HNB), the country's debt abroad totalled 20.8 billion dollars in late October 2003, which rose in the nominal terms by 5.4 billion or 35.4 percent since the end of 2002. Seventy (70) percent of the increase, namely 3.8 billion, were net transactions, while 30 percent was the result of trends and changes in the relations among currencies, i.e. the depreciation of the dollar which is used as the currency for the expression of the foreign debt. The central bank adds that the country's financial obligation abroad will be higher in 2004 than in 2003. The central government is expected to pay back 955 million of the principal sum of the foreign debt in 2004 which is by about 600 million higher than in 2003. According to the HNB bulletin, the largest part from 2.5-billion principal, namely 1.1 billion, is to be paid back by other sectors (companies), while banks are expected to pay back 286 million of the principal of the foreign debt. It was banks that contributed, to the largest extent, to the increase in the foreign debt. The transactions of banks in incurring the debt came to 1.3 billion at the end of October 2003. They were followed by the state sector whose transactions in the debt amounted 1.1 billion last year. (Hina) sb ms

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