ZAGREB, May 8 (Hina) - In 2001 the Croatian National Bank (HNB) achieved its main goal - maintaining a low inflation rate, a trend which has continued into 2002, the HNB Council said during a discussion on the annual report for 2001
at a session on Wednesday.
ZAGREB, May 8 (Hina) - In 2001 the Croatian National Bank (HNB)
achieved its main goal - maintaining a low inflation rate, a trend
which has continued into 2002, the HNB Council said during a
discussion on the annual report for 2001 at a session on Wednesday.
#L#
Last year's retail prices increased by 2.6 percent, while the basic
price growth rate (without administrative and seasonal prices) was
1.7 percent.
Retail prices in April this year are only 2.2 percent higher than
last April, and in the first four months of this year they were 2.9
percent higher than in the same period last year.
The monetary policy in 2001 was not restrictive. The central bank
maintained a high level of liquidity of the banking system,
enabling the banks to increase the granting of loans to companies
and citizens and further lower interest rates, following
consolidation in 2000.
These developments have contributed to reviving economic growth,
while Gross Domestic Product increased by 4.1 percent.
The HNB's foreign currency reserves increased last year by a record
1,152 million dollars, totalling USD4,677 million on the last day
of 2001.
The HNB Council considers that the banking system in 2001 was
characterised by increased stability and efficiency and
strengthened trust in the banking system, which can be concluded by
the fact that foreign currency deposits were kept in the banks after
their conversion to the euro. This conclusion is supported by the
fact that problems which arose in Rijecka Banka early this year did
not affect other banks.
(hina) rml sb