Although the growth of the foreign debt slowed down in 2005, it is estimated that the foreign debt's share in Gross Domestic Product went up to 84.7 per cent, or 2.2 per cent more than in 2004.
Last year, the foreign debt grew due to a 22.5 per cent higher indebtedness of enterprises and a 16.7 per cent higher indebtedness of banks. On the other hand, domestic borrowing reduced the state's foreign debt by 2.6 per cent.
According to the latest HNB Bulletin, the foreign indebtedness of enterprises and banks in 2005 went up EUR1.3 billion each, whereas the state reduced its foreign debt by EUR190 million.
The state's foreign debt, which slightly exceeds seven billion euros, went down from 31.8 per cent of Croatia's external debt at the end of 2004 to 27.7 per cent at the end of 2005.
Banks have the highest foreign debt, EUR8.99 billion, and their share in the national external debt went up from 33.8 to 35.2 per cent.
The foreign debt of enterprises, EUR7.1 billion, increased from 25.5 to 27.9 per cent of the national external debt.
Direct investments account for EUR2.3 billion of the foreign debt, an increase from 8.8 per cent at the end of 2004 to 9.2 per cent at the end of last year.