ZAGREB, Aug 26 (Hina) - The Croatian National Bank Council will hold a special session on Wednesday with the aim of making a decision to increase banks' compulsory foreign currency reserves from the current 25 percent to 35
percent.
ZAGREB, Aug 26 (Hina) - The Croatian National Bank Council will hold
a special session on Wednesday with the aim of making a decision to
increase banks' compulsory foreign currency reserves from the
current 25 percent to 35 percent. #L#
This measure, which relates to the neutralisation of the liquidity
of the kuna currency.
The increase of the compulsory foreign currency reserves would
immobilise some 2.1 billion kuna.
If said measure does not yield results, the central bank could
increase the rate of banks' required reserves from 19 to 22 percent
and if this also proves to be insufficient, there will be
restrictions in capital transactions, such as the introduction of
interest-free deposits for loans taken by banks abroad in the
amount of 30 percent of the loan, Rohatinski has said.
The HNB's leadership has been warning about high foreign debts and
the problem of the balance of payments deficit, announcing steps to
alleviate the negative trends.
According to HNB data, Croatia's overall foreign debt reached
US$18.56 billion on June 30, an increase of US$3.22 billion in
comparison to the beginning of the year.
(hina) lml