Borrowing is the basis of the functioning of all present-day states. Whether it is financing the budget deficit, investment projects or special programs, repaying sovereign debt, settling outstanding government guarantees, managing the liquidity of the budget or meeting the needs of the Croatian National Bank for international reserves, which aim to achieve the lowest cost of limited and controlled risk financing in the medium and long term. Republic of Croatia, the newest member state of the European Union, is a country whose public debt is the focus of this paper. Trends in public debt in the period from 2015 to 2019, detailed structure of internal and external debt and sovereign debt are presented in the research section, as well as a comparison of credit ratings and public debt of the Republic of Croatia and other EU Member States.The reason for the analysis of the Republic of Croatia is its position, both geographically and as the newest member states of the European Union, as well as the candidate countries for joining the monetary union and adopting the euro as a currency. To become a member of monetary union, the country has to achieve convergence criteria, what is Republic of Croatia close to achieve, according to Convergency Report by European Comission, published in 2018.