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Banker says banks helped Croatian gov't overcome 1st wave of crisis

ZAGREB, April 2 (Hina) - Croatian commercial banks have granted more than two billion euros in loans to the government in the last 6 months, making it possible for the state to fend off the first blow of the crisis, the Chief Executive Officer of Privredna Banka Zagreb, Bozo Prka, said at a two-day business conference organised by the TEB company in Zagreb on Thursday.
ZAGREB, April 2 (Hina) - Croatian commercial banks have granted more than two billion euros in loans to the government in the last 6 months, making it possible for the state to fend off the first blow of the crisis, the Chief Executive Officer of Privredna Banka Zagreb, Bozo Prka, said at a two-day business conference organised by the TEB company in Zagreb on Thursday.

Prka believes that the answer to the question as to how to overcome the ongoing crisis lies outside the monetary and credit sphere.

Prka said the current economic model, based on higher consumption than income and saving, should be abandoned, announcing a reduction in loans to the retail sector and more loans to small and medium-sized enterprises.

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