ZAGREB, Feb 28 (Hina) - Croatia's external debt has exceeded ten billion US dollars, reaching $10.099 billion at the end of November last year, according to the latest data from the central bank. The national debt amounted to $4.6
billion, accounting for 45.5 percent of the entire figure, while the banks' debt was $1.4 billion, or 14.4% of the entire figure. Non-financial companies, other financial institutions and the population accounted for 29.9% or a little over $3 billion. The external debt had reached $9.5 billion already at the end of 1998. According to central bank data, external indebtedness started rising considerably after 1996, when the $5.3 billion figure included the reprogrammed debt to the Paris and London clubs. At the end of 1997, it jumped to $7.4 billion, reaching $9.8 billion by the end of 1999. To pay old debts, Croatia has to incur new ones abroad, but thanks to a more fav
ZAGREB, Feb 28 (Hina) - Croatia's external debt has exceeded ten
billion US dollars, reaching $10.099 billion at the end of November
last year, according to the latest data from the central bank.
The national debt amounted to $4.6 billion, accounting for 45.5
percent of the entire figure, while the banks' debt was $1.4
billion, or 14.4% of the entire figure. Non-financial companies,
other financial institutions and the population accounted for
29.9% or a little over $3 billion.
The external debt had reached $9.5 billion already at the end of
1998. According to central bank data, external indebtedness
started rising considerably after 1996, when the $5.3 billion
figure included the reprogrammed debt to the Paris and London
clubs. At the end of 1997, it jumped to $7.4 billion, reaching $9.8
billion by the end of 1999.
To pay old debts, Croatia has to incur new ones abroad, but thanks to
a more favourable credit rating is now in the position to achieve
better credit conditions. This will make it possible to pay old,
unfavourable debts with cheaper money.
To that end, the placement of $215 million worth of samurai bonds
was agreed in Japan earlier this month, for a five-year period and a
2.5 percent annual interest rate, the best yet to be achieved on the
Japanese market.
This week a government delegation is negotiating a new placement of
Croatian euro-bonds in Europe's principal financial centres,
namely some EUR500 million for a period of 7-10 years.
The Finance Ministry has pointed out the latest bond issuing will
enable Croatia to fully settle its credit obligations for this year
and continue refinancing old, unfavourable loans with cheaper
money.
(hina) ha sb