Croatia's public debt at the end of January amounted to HRK 283.7 billion (approx. EUR 38.33 billion), 998 million less than the month before and HRK 3.4 billion or 1.2% more than in January 2018, Raiffeisenbank Austria (RBA) said in an analysis.

The consolidated general government debt, expressed according to the ESA methodology, was HRK 998 million or 0.4% down from the end of 2018, with both its domestic and foreign components having dropped, RBA analysts say in a comment on data published recently by the Croatian National Bank.

Compared to January 2018, general government debt was up HRK 3.4 billion or 1.2%.

Year-on-year foreign debt dropped by HRK 4.1 billion or 3.8% to HRK 104.3 billion.

Domestic debt grew by HRK 7.6 billion or 4.6% to HRK 179.4 billion.

General government guarantees issued on the domestic market totalled HRK 3.4 billion at the end of January, with guarantees issued for Croatian Reconstruction and Development Bank (HBOR) loans totalling 1.7 billion and foreign general government guarantees amounting to HRK 2.9 billion.

“Considering the expected continuation of economic growth this year, the share of public debt in GDP could continue to fall, albeit at a slower rate,” the analysts say.

According to statistics published recently by the national statistical office, the share of public debt in GDP at the end of 2018 was 74.6%.

“If the current conditions of high liquidity and low interest rates on the European and domestic financial markets continue, the state will certainly successfully (re)finance its due obligations. This is supported by a recent credit rating assessment that has put Croatia back in the investment category,” the RBA said, noting that positive trends were expected also in light of expectations regarding the tourist season.