ZAGREB, April 24 (Hina) - Under the chairmanship of governor Zeljko Rohatinski, the Croatian National Bank (HNB) Council on Wednesday discussed the latest monetary and economic trends and adopted a monetary projection for this year's
second trimester.
ZAGREB, April 24 (Hina) - Under the chairmanship of governor Zeljko
Rohatinski, the Croatian National Bank (HNB) Council on Wednesday
discussed the latest monetary and economic trends and adopted a
monetary projection for this year's second trimester. #L#
The basic macroeconomic indicators are still good. The annual rate
of inflation in March was 1.7 percent. After somewhat noticeable
pressures aimed at depreciation in the first trimester, because of
which the central bank intervened three times on the foreign
exchange market in March by selling 150.1 million euros, early
April saw a rise in the kuna exchange rate and then stabilisation of
the currency to around 7.52 kuna per euro. According to estimates,
both prices and the exchange rate will continue to fluctuate within
the expected margins.
The increase of bank loans to the non-financial sector has been
reduced to a slow crawl in comparison to the last months of 2002, but
in the first trimester still amounted to a high five percent. Loans
to citizens grew by far faster, 8.4%, loans to companies were 2.5
percent and at the same time, interest rates for companies
increased, but decreased for citizens.
The decreasing trend of banks' debit rates continues. The
difference between interest rates on overall loan amounts and the
overall amount of deposits increased in February to eight
percentage points.
According to information submitted by commercial banks, March saw a
drop in loan granting, but there are indicators that the transfer of
credits between daughter banks and main banks or related companies
was more to blame for this than a true decrease of loan activity.
The HNB Council is mostly concerned about the increase in foreign
debts incurred by both banks and the state, which continues this
year. The Council is worried that this greatly stimulated domestic
demand for imported products, which aggravates the foreign trade
and current account of the balance of payments.
The Council concluded that a comprehensive debate on the issue be
prepared for the next session.
(hina) lml sb