Foreign Debt Declines to 40 Billion Euro

By 7 May 2018

ZAGREB, May 7, 2018 - Croatia's gross foreign debt at the end of January 2018 was 40 billion euro, 2.1 billion or 5% down from the same month of 2017, thus continuing to fall since the end of 2015,says an analysis by Raiffeisenbank Austria (RBA).

The debt decrease is mostly owing to other domestic sectors' deleveraging, with the debt in this category falling since the end of September 2016. The gross foreign debt of the other domestic sectors declined by 5.3% to 13.5 billion euro in January 2018 year-on-year.

Private companies' gross foreign debt was reduced by 6% to 9.8 billion euro on the year.

The general government's gross foreign debt was cut by 820 million euro or by 5.6% to 13.9 billion euro at the end of January 2018.

Having in mind the prospects of the projected positive economic growth by the end of this year, the RBA analysts expect the gross foreign debt to GDP ratio to fall below 80%.