Croatia's foreign debt amounted to EUR 45.8 billion at the end of 2010, an increase of EU 1.2 billion over 2009, according to figures from the Croatian National Bank.
A large portion of the debt increase (EUR 800 million) was the result of exchange-rate and other adjustments, and fresh borrowing during 2010 exceeded repayments by EUR 300 million, HNB analysts said in the bank's latest bulletin.
The central government's foreign debt reached EUR 5.9 billion, and the annual increase of EUR 700 million (excluding exchange-rate changes) was mainly fueled by the issue of USD 1.25 billion worth of bonds on the US market in July 2010. After that the central government only refinanced its immediate liabilities.
In addition to the government sector, public companies also contributed to last year's foreign borrowing growth with EUR 700 million. Most of their loans were obtained in the first nine months of the year, after which there was a stagnation.
In the last quarter, the Croatian Bank for Reconstruction and Development (HBOR) did not take additional loans, so that the level of indebtedness of the public sector did not substantially change, remaining at EUR 13.6 billion.
The HNB said that commercial banks' foreign debt increased slightly owing to exchange-rate changes. In the last quarter their debt increased by EUR 700 million, reaching EUR 10.8 billion at the end of the year.
The overall foreign debt of other domestic sectors was EUR 21.7 billion.
