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General government deficit at end of November totals 101.6 billion

Autor: ;itom;
ZAGREB, Feb 18 (Hina) - Croatia's general government deficit at the endof November 2005 amounted to 101.6 billion kuna or 45.6 percent of theexpected Gross Domestic Product and if state collateral and the debtof the Croatian Bank for Reconstruction and Development (HBOR) areadded to that, the amount raises to 121.2 billion kuna or 54.4 percentof GDP, according to figures released by the Finance Ministry.
ZAGREB, Feb 18 (Hina) - Croatia's general government deficit at the end of November 2005 amounted to 101.6 billion kuna or 45.6 percent of the expected Gross Domestic Product and if state collateral and the debt of the Croatian Bank for Reconstruction and Development (HBOR) are added to that, the amount raises to 121.2 billion kuna or 54.4 percent of GDP, according to figures released by the Finance Ministry.

At the end of November 2005, the overall collateral issued by the state amounted to 12.2 billion, while the HBOR's debt totalled 6.4 billion and almost of which 95 percent refers to external indebtedness.

Looking by the structure of the general government deficit - the central state, extrabudgetary funds and the local state - 45 percent or 45.7 billion is external debt, while 55 percent or 55.8 billion kuna is internal debt. At the end of 2004, external debt in the general government deficit amounted to 54 percent while internal debt accounted for 46 percent. The change in a ratio between external and domestic debt is the result of a stronger orientation of the central state towards the domestic capital market.

In relation to the end of 2004, external debt at the end of November 2005 was reduced by 4.4 billion kuna or 8.7 percent, primarily owing to the refinancing of international bonds, worth EUR500 million, the Finance Ministry said.

The share of the central state in the general government deficit is nearly 84 percent, namely of a total of 101.6 million billion kuna of the general government deficit, 85.2 billion refers to the central state.

(Hina) it

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