Croatia's gross foreign debt at the end of February amounted to EUR 46.4 billion, marginally less than at the end of 2010, according to the Croatian National Bank's latest bulletin.
The external debt for the first time included liabilities which domestic sectors issued on the domestic markets and which were purchased by non-residents.
In the first two months of the year, the growth of the gross foreign debt mildly stepped up due to a recovery of the borrowing of private companies and the continued pronounced borrowing of public companies. However, the debt marginally decreased thanks to the appreciation of the euro against the US dollar.
The central government did not additionally borrow abroad in the first two months of 2011. Payments mainly went to service interest. The state's debt decreased HRK 92 million from the end of 2010, to EUR 6.5 billion at the end of February.
Commercial banks mildly intensified borrowing in the first two months of 2011, increasing foreign liabilities by EUR 73 million. Their debt at the end of February was EUR 10.8 billion.
The foreign liabilities of other domestic sectors, mainly companies and financial institutions other than banks, were EUR 285 million higher at the end of February than at the end of 2010, amounting to EUR 21.8 billion.
After a long period of stagnation, private companies intensified their foreign borrowing and public companies also borrowed further.
The debt based on direct investment continued to decline, by EUR 273 million in the first two months of the year, to EUR 7.2 billion at the end of February.
