Croatia's gross foreign debt reached 49.2 billion euros at the end of July 2015, or 113.8% of the estimated GDP, according to the latest figures from the Croatian National Bank (HNB).
After falling for two consecutive months, gross foreign debt increased by EUR 421 million or 0.9% in July compared with June and by 3.2 billion euros or 7.1% compared with July 2014.
The strong annual increase in gross foreign debt was mostly due to growing obligations towards foreign creditors in the general government sector, whose foreign debt reached EUR 16.2 billion at the end of July, accounting for a third of the country's total gross foreign debt, analysts at Raiffeisenbank Austria (RBA) said on Friday.
Compared with June 2015, general government foreign debt decreased by EUR 86 million or 0.5%, but compared with July 2014 it rose by EUR 1.7 million or 12%. The RBA analysts said that July was the fifth month in a row to see a two-digit rate of general government foreign debt growth.
The total gross foreign debt of the public sector, which includes the foreign debt of public non-financial companies, reached EUR 20.3 billion at the end of July 2015, accounting for over 41% of the total gross foreign debt.
The foreign debt of the private sector amounted to EUR 29 billion in July 2015, which was a drop of 1% or EUR 291 million compared with June 2015, while in comparison with July 2014 it stagnated.
"These trends are predominantly the result of financial sector deleveraging, as confirmed by data on the foreign debt of monetary institutions, which reached EUR 7.9 billion at the end of July 2015, down by 3.3% on the monthly level and by 5.7% on the annual level," the RBA analysts said.
The foreign debt of other private financial institutions declined by 12.6% to EUR 3 billion at the end of July compared with the same month last year. The foreign debt of other domestic sectors was EUR 11.6 billion and 98% of it related to private non-financial companies, which recorded further foreign debt growth.