ZAGREB, April 10 (Hina) - The Croatian National Bank's (HNB), Council convened on Wednesday at a session presided by Governor Zeljko Rohatinski to examine the latest monetary and economic movements, adopted monetary projections for
the second quarter of 2002, a report on the administration of international reserves and financial reports for 2001, and adopted several other decisions in its jurisdiction.
ZAGREB, April 10 (Hina) - The Croatian National Bank's (HNB),
Council convened on Wednesday at a session presided by Governor
Zeljko Rohatinski to examine the latest monetary and economic
movements, adopted monetary projections for the second quarter of
2002, a report on the administration of international reserves and
financial reports for 2001, and adopted several other decisions in
its jurisdiction. #L#
As reported from the HNB, the monthly inflation rate in March was
0.4 per cent while the inter-annual inflation rate was 3.2 per cent.
The stability of the currency exchange rate was maintained with
increasing pressure to raise the value of the domestic currency
resulting in two intervening moves by the central bank on the
foreign currency market where a total of Eur237.9 million was
purchased. Monetary effects resulting from these interventions, as
well as loans approved to increase the Rijecka Banka's liquidity
have in the meantime successfully managed to neutralise matters.
The sliding trend of interest rates for company and private loans is
continuing. The net foreign share in banks is decreasing and
domestic shares are on the rise. Details concerning the movement of
foreign deposits confirm that the outflow of foreign currency from
the Rijecka Banka did not result as it did with other bank affairs
however, the high rate of growth has been deflated with the
introduction of the Euro - the Bank's press release says.
The high liquidity in the banking system and the level of interest
rates on the monetary market as well as decreases in interest rates
for cash and safe deposit records used to approve Lombard loans, has
motivated the HNB's Council to decrease the rate of Lombard loans
from 10 to 9.5 per cent annually. The changes in reference rates
should stimulate decreases in interest rates on the market and with
that relieve the pressure of appreciation on the domestic currency.
With this same objective in mind, the HNB Council decreased the rate
that the HNB pays on funds set aside for the kuna portion of
compulsory reserves from 2 to 1.75 per cent.
The total value of international reserves at the Croatian National
Bank at the end of last year amounted to $4.67billion which is
$1.15billion more than the end of the previous year. The increase
was largely the result of purchasing foreign currencies from
commercial banks ($807million). Smaller amounts of foreign
currencies were purchased from the Finance Ministry. Foreign
currency cash records were increased, as was the inflow of gold and
foreign currency based on succession as well as revenue from
investments on foreign currency reserves. The increase could have
been higher if banks at the same time did not purchase foreign
currencies from the central bank (about $424million) and if there
had not been any negative effects of inter-currency relations
resulting from the weakening of the Euro compared to the dollar.
(hina) sp sb