ZAGREB, Feb 21 (Hina) - Foreign currency deposits in Croatian commercial banks at the end of last December amounted to 71.8 billion kuna (9.7 billion euros), which is 13.2 billion kuna more (a nominal increase of 22.5%) than in late
September, read the latest data from the Croatian National Bank (HNB). Monetary movements in the last quarter of 2001 were marked by a sharp rise of citizens' foreign currency deposits, caused by the depositing of the Euro-zone currencies ahead of conversion into the euro, with the trend culminating in December. In the fourth trimester of last year, the citizens' foreign currency deposits, which account for 88% of all foreign currency deposits in commercial banks, rose effectively by almost two billion euros, increasing by 1.2 billion euros in December alone. The annual nominal growth rate of foreign currency deposits in commercial banks in 2001
ZAGREB, Feb 21 (Hina) - Foreign currency deposits in Croatian
commercial banks at the end of last December amounted to 71.8
billion kuna (9.7 billion euros), which is 13.2 billion kuna more (a
nominal increase of 22.5%) than in late September, read the latest
data from the Croatian National Bank (HNB).
Monetary movements in the last quarter of 2001 were marked by a
sharp rise of citizens' foreign currency deposits, caused by the
depositing of the Euro-zone currencies ahead of conversion into the
euro, with the trend culminating in December.
In the fourth trimester of last year, the citizens' foreign
currency deposits, which account for 88% of all foreign currency
deposits in commercial banks, rose effectively by almost two
billion euros, increasing by 1.2 billion euros in December alone.
The annual nominal growth rate of foreign currency deposits in
commercial banks in 2001 was 53.2%, twice higher than the year
before (26.9%), reads the latest HNB Bulletin.
The growth of foreign currency deposits stimulates the increase of
other credit and monetary aggregates, including the banks' credit
activity.
Loans granted by business banks to other sectors effectively
increased by six percent in the fourth trimester. The growth rate of
effective loans in 2001 was 25% as against nine percent in 2000.
Loans granted in late December totalled more than 72.9 billion
kuna.
For the first time after five years, company loans rose faster than
loans granted to citizens in the last trimester of 2001. This,
analysts say, points to an increased investment activity and growth
of production in the future.
A simultaneous increase in liabilities in the banking sector,
caused by higher foreign currency deposits, creates room for a more
significant increase in the bank's credit activity. In January and
February this year the banks announced significant cuts in loan
interest rates and the introduction of new credit lines.
(hina) rml