ZAGREB, April 16 (Hina) - The present trend of Croatian foreign debt growth is untenable, and if it continues at an average annual rate of 7-8 per cent, it may exceed GDP in three years, Vladimir Gligorov of the Vienna-based Institute
for International Economic Studies said on Friday presenting the results of the Institute's latest analysis in the Office of the Croatian President in Zagreb.
ZAGREB, April 16 (Hina) - The present trend of Croatian foreign debt
growth is untenable, and if it continues at an average annual rate of
7-8 per cent, it may exceed GDP in three years, Vladimir Gligorov of
the Vienna-based Institute for International Economic Studies said on
Friday presenting the results of the Institute's latest analysis in
the Office of the Croatian President in Zagreb.#L#
The servicing of the debt does not seem to be the problem, because
liquidity is good, but considering the growth trend and a high overall
foreign debt, there could be the problem of solvency, Gligorov said.
Croatia's foreign debt totalled nearly US24 billion at the end of
last year and its share in GDP was 83.3 per cent. It is estimated that
by the end of this year it will reach 28 billion.
Compared to other transition countries, Croatia has had steady foreign
debt growth since 1994, Gligorov said.
The analysis, entitled "Challenges to the Croatian Economic Policy",
was conducted as part of a three-year project which the Office of the
President had agreed with the Vienna Institute.
The presentation was attended by Croatian National Bank Governor
Zeljko Rohatinski, Chairman of the Chamber of the Economy Nadan
Vidosevic, representatives of the Croatian Employers' Association,
trade unions, the Institute of Economics, the School of Economics, the
Academy of Arts and Sciences and a group of independent economists.
However, no government officials were present.
(Hina) vm sb