"There will be borrowing, but I really don't know much about the information that appeared in the public. It seems to me to be an exaggeration," Grcic said at a news conference after a government session.
Media reported yesterday that Croatia planned to borrow money on the domestic market by the end of this year by issuing bonds worth about three billion kuna (US $500 million) and that it was considering the possibility of an international bond issue at the beginning of 2015.
Grcic said that government officials were recently on an informal, non-deal road show to discuss with US and European investors a possible new loan.
Grcic said the loan was certain to be taken, but the government would decide on the exact timing after careful consideration, adding that the loan would be used to refinance the existing debts and partly finance the deficit.
"At the moment, there is no definitive decision," Grcic said, noting that the government was regularly borrowing and repaying its debts, taking care of the state's liquidity and fulfilment of financial obligations.