ZAGREB, June 9 Croatia is gearing up for a local
bond issue worth up to 500 million euros ($559.30 million) that
is expected soon, a source at a major local bank said on Friday.
"The issue is likely to specifically target insurance groups
and pension funds. Its maturity is seen at 15 years and the
interest rate somewhat over three percent," said the source who
asked not to be named.
According to a government source, a fresh issue is under
consideration and may be ready for early next month, while the
details are expected towards end of June.
This year Croatia has already refinanced a local bond in
February and an international issue in March
It also has to refinance a local bond worth 4.0 billion kuna
($603.86 million) that matures in November.
Croatia's public debt was at 84 percent of gross domestic
product at the end of the last year when the government managed
to make if fall for the first time in almost a decade.
Last month Croatia exited the European Union's excessive
deficit procedure - a tool Brussels uses to impose fiscal
discipline in member states - after a fiscal gap in 2016 fell to
0.8 percent of GDP from 3.4 percent a year before.
($1 = 0.8940 euros)
($1 = 6.6240 kuna)
(Reporting by Igor Ilic; Editing by Tom Heneghan)