COMPARATIVE ANALYSIS OF EXTERNAL DEBT INDICATORS IN CROATIA AND SOUTHEASTERN EUROPEAN COUNTRIES
The issue of debt sustainability is the key macroeconomic question faced by country’s policy makers when making important macroeconomic decisions. The problem of indebtedness in Croatia appeared after 1999 when public and external debt recorded accelerated growth rates. There is a danger of risk associated with the sources of funding that affects the apprehension about the possibility of future external debt servicing. However this is not only the specificity of the Croatian economy, because most Southeastern European transition countries were in a similar situation. The goal of the analysis is to compare the level of indebtedness in Croatia and Southeastern European countries and test the hypothesis of the paper which states that “Croatia is highly indebted country according to external debt burden and external debt flow indicators”. Using comparative analysis of external debt indicators the level of indebtedness in Croatia and Southeastern European countries is compared for the year 2010. Only by analyzing a large number of external debt indicators over a longer period of time it is possible to get a clear picture about the level of country’s external indebtedness. From the comparative analysis of external debt indicators in Croatia and Southeastern European countries it can be seen that Croatia and Serbia are the most indebted countries in the region. In both countries unsustainable levels in the five indicators of external debt are present, particularly in the basic indicators; TED / Y, TED / EXP and TDS / EXP.
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