The gross external debt increased by 0.2% m/m and reached EUR 44.3bn at end-May, according to data published by the central bank on Thursday. As a result, it represented 113.2% of GDP. Central bank’s external debt rose by 9.1% m/m partly due to increasing loan. At the same time, banks’ continued to repay their external liabilities and thus bank sector’s external debt dropped by 2.5% m/m. In the meantime, the external debt of the non-bank corporate sector and the general government reported slight growth. Considering that the government does not face any urging financing needs, we do not expect the public external debt to increase noticeably in the coming months. At the same time, the corporate sector will likely continue with its deleveraging, so we do not expect the total gross external debt to report tangible growth in the next months.
Net external debt dropped by 1.8% m/m and amounted to EUR 11.2bn at end-May. Thus, it represented 28.5% of GDP.