croatian_national_bank - HNB.jpg

Croatia's gross foreign debt at the end of December 2015 was EUR 45.5 billion or 103.7% of GDP, which was 4.7 percentage points less than the year before, according to the latest figures from the Croatian National Bank (HNB).

It was the first time since 2014 that gross foreign debt had dropped annually, by EUR 1.1 billion or 2.4%, which was primarily the result of marked deleveraging of credit institutions which significantly intensified in the second half of 2015, Raiffeisenbank Austria (RBA) said in a study on Tuesday.

At the end of 2015, the gross foreign debt of other monetary financial institutions was EUR 6.1 billion, which was EUR 2 billion less than in December 2014 and represented an annual decrease of nearly 25%.

At the same time, the reduction of the foreign debt of credit institutions by EUR 817 million or 11.8%, compared with November 2015, most significantly contributed to the reduction of gross foreign debt on the monthly level, by EUR 1.7 billion or 3.5%.

On the other hand, the central bank increased its foreign obligations by EUR 1.2 billion annually.

The foreign debt of the general government sector reached EUR 15.9 billion at the end of 2015, accounting for nearly 35% of the total gross foreign debt.

While recording a monthly decrease of EUR 204 million or 1.3% compared with the end of 2014, the gross foreign debt of general government increased by EUR 498 million or 3.2%, RBA analysts said.

At the end of 2015, the total gross foreign debt of the public sector, which includes the foreign debt of public non-financial companies, totalled EUR 19.5 billion, accounting for nearly 43% of the country's total gross foreign debt. Thus the foreign debt of the public sector last year recorded a strong increase of EUR 1.7 billion or 9.7%.

On the other hand, the debt of the private sector at the end of 2015 decreased to EUR 25.9 billion, which was a monthly decrease of EUR 1.2 billion or 4.4%, mostly due to financial sector deleveraging. That's why the public sector debt recorded a significant decline of EUR 2.9 billion or 10.1% annually.

However, the foreign debt of private non-financial companies continued to rise in 2015, reaching EUR 11.7 billion, an increase of 4.7% annually.

Given the abundant foreign liquidity and favourable financing terms, further encouraged by the European Central Bank's monetary easing policy, in 2016 we expect continued borrowing by domestic companies with a higher credit rating on foreign financial markets, RBA analysts said.

Related stories

Croatia's gross foreign debt exceeds EUR 49bn

Croatia's gross foreign debt reaches 107.6 pct of GDP

Foreign debt in April drops over 10 pct annually

Gross foreign debt grows 4.1% on year

Croatia's gross foreign debt cut by 9.4% to 42.4 bln euro

Latest news

Six injured, 96 detained in Berlin fan clashes

Six people were treated in hospital and 96 detained in clashes in Berlin between fans of Hertha Berlin and Eintracht Frankfurt, police said Sunday.

Croatian government condemns extremism

The Croatian government on Sunday condemned all forms of extremism and acts of provocative nature aimed against the Serb minority in Vukovar as well as the rally organised by the Autochthonous Croatian Party of Rights (A-HSP) in Zagreb on Friday.

Approx. 7,500 migrants prevented from illegally entering Serbia in past 8 months

In the past several months, the authorities have prevented the illegal entry of approximately 7,500 migrants on Serbian soil. Serbian Interior Minister Nebojsa Stefanovic said Sunday.

Merkel's conservatives and Schulz's centre-left draw even in survey

Voter support for the German centre-left Social Democrats (SPD) is on par with Chancellor Angela Merkel's conservatives, a survey published Sunday showed.

Police arrest A-HSP party chief at rally in Zagreb

Police arrested Autochthonous Croatian Party of Rights (A-HSP) chief Drazen Keleminac for disturbing the peace at a public rally organised by the A-HSP in Zagreb on Sunday.

Kidnapped German archaeologists freed in Nigeria

Two German archaeologists who were kidnapped in northern Nigeria have been released, police said Sunday.

Turkey has built 290 kilometres of wall on border with Syria

Turkey has erected 290 kilometres of a planned 511-kilometre wall along its border with Syria, local media reported Sunday, citing the head of the building authority in charge of the project.

Syrian forces close in on city held by Turkish-backed rebels

Syrian government forces on Sunday seized a town from the Islamic State extremist militia near the northern city of al-Bab already under the control of Turkish-backed rebels, Syrian state media and monitors reported.

At least 90 Christian families escape Sinai attacks

At least 90 families reached Egypt's Ismailiya governorate, after escaping targeted killings by a local Islamic State militia in northern Sinai in recent days, an official at the Coptic Orthodox Church said Sunday.

40,000 Croats suffer from anorexia and bulimia

More than 40,000 Croatians, mostly girls and young women aged between 12 and 30, suffer from anorexia, bulimia or some other eating disorder and that number is growing each year, experts at the centre for eating disorders BEA have reported.

Iranian ex-president Ahmadinejad praises Trump

Former Iranian president Mahmoud Ahmadinejad wrote a personal letter to Donald Trump in which he praised the US president and wished him well in his tenure, local media reported Sunday.

Russians honour slain opposition leader Nemtsov in Moscow rally

A demonstration on the second anniversary of the assassination of Russian opposition leader Boris Nemtsov drew thousands of people to the streets of Moscow on Sunday.