The issue may be "around one billion euros or a bit more" and the proceeds of the bonds will be used to cover the budget deficit and refinance maturing debt, the unnamed source said.
Croatia is in the European Union's excessive deficit procedure, a tool used to enforce the fiscal discipline in member states, Reuters said, recalling that Croatia joined the bloc on 1 July 2013.
"We've yet to define the details of the local bond, but it will be in the range of about three billion kuna. The issue is planned for November or early December and is mostly aimed at covering the remaining budget needs for this year after the coming rejig of the 2014 budget," the source was quoted as saying.
Hina was unable to obtain a comment at the government.