ZAGREB, Jan 26(Hina) - Croatia's foreign debt exceeded US21.57 billion in late November 2003, which is a nominal increase of almost 40 percent or 6.16 billion more than at the end of 2002, according to the latest Bulletin of the
Croatian National Bank (HNB).
ZAGREB, Jan 26(Hina) - Croatia's foreign debt exceeded US21.57 billion
in late November 2003, which is a nominal increase of almost 40
percent or 6.16 billion more than at the end of 2002, according to the
latest Bulletin of the Croatian National Bank (HNB).#L#
The increase of the debt was considerably influenced by exchange rate
fluctuations, i.e. depreciation of the dollar in relation to the euro.
HNB analyses in October showed that some 30 percent of the foreign
debt increase was due to currency changes.
Since in December the euro continued to appreciate in relation to the
dollar and the kuna continued to appreciate in relation to the dollar,
its value rising by 4.4 percent in December alone, analysts say this
could additionally increase the dollar amount of the foreign debt as
the largest part of the debt is denominated in the euro and the debt
is stated in dollars.
In an analysis presented to the government last week, the Finance
Ministry estimated that the value of the foreign debt at the end of
last year could reach 22.8 billion or some 75 percent of GDP.
According to HNB data, the state still accounts for the largest part
of the debt, although its share has been gradually decreasing while
the share of banks has been increasing.
The state debt in the first 11 months of 2003 increased nominally by
1.78 billion dollars and the state's foreign debt at the end of
November totalled 8.14 billion dollars, which is 37.7 percent of the
total foreign debt (at the end of 2002 the state share was 41.3
percent).
The banks' 26.1 percent share in the foreign debt in 2002 increased to
28.2 percent at the end of last November. The banks' foreign debt in
the first 11 months of last year increased nominally by 2.06 billion
dollars, totalling 6.08 billion at the end of November.
Slightly more than one-fourth or 25.6 percent of the foreign debt
refers to other sectors (companies). In the first 11 months of last
year, the companies' share in the foreign debt increased by 1.56
billion in relation to the end of 2002, totalling 5.53 billion at the
end of November.
The HNB estimates that some 3.7 billion dollars of the foreign debt is
due to be paid this year. Of that amount, 2.9 billion refers to the
principal while 801 million refers to interest.
(Hina) rml sb