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HNB CURBS EXCESSIVE GRANTING OF LOANS

ZAGREB, Feb 12 (Hina) - The Croatian National Bank's (HNB) Council stated at a session on Wednesday that measures undertaken to restrict the excessive granting of bank loans were necessary and that it would be unjustified to delay them for a longer period of time.
ZAGREB, Feb 12 (Hina) - The Croatian National Bank's (HNB) Council stated at a session on Wednesday that measures undertaken to restrict the excessive granting of bank loans were necessary and that it would be unjustified to delay them for a longer period of time. #L# During December loans continued to grow at an annual rate of 30.5%, while the banks' foreign currency assets decreased. Loans granted to companies increased at a rate of 22.7%, while those granted to citizens grew almost twice as fast (43%). According to preliminary data, this trend continued in January as well - the monthly growth of loans was around 1.6%, which was less than in December (2.3%), but still unusually high for the first month of the year. The Council also considered the latest economic and monetary developments. It stated that the end of last year had been marked by lively business activity. GDP in the third quarter increased by 6.5% so that the annual cumulative growth rate reached 5%. Industrial production, trade and construction continued growing as well. Retail prices in January were 0.4% higher than the previous month and 1.6% higher than in January 2002. The value of the kuna compared to the euro at the end of January was 1.52% lower in nominal terms than the month before and similar to the kuna-euro exchange rate at the end of last year's January. (hina) rml sb

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