FOREIGN CURRENCY DEPOSITS CONTINUE TO RECOVER, CREDITS GROW

ZAGREB, Sept 16 (Hina) - Foreign currency deposits in business banks at the end of July amounted to 69.2 billion kuna (EUR9.4 billion), while credits to other sectors were 87.4 billion kuna (EUR11.8 billion), the Croatian National Bank said on Monday. #L# A recovery of foreign currency deposits, which began in May, continued throughout June and July, although the July figure is still lower than at the beginning of the year. Foreign currency deposits dropped or stagnated due to the post-euro effect and problems in Rijecka Bank. The July growth was 1.2 billion kuna (EUR162 million), or 1.8 percent on the monthly and 34.3 percent on the annual level. In late January, foreign currency deposits amounted to 74.8 billion (EUR10.1 billion) and in late February to 73.6 billion kuna (EUR9.9 million). Credits to other sectors continue to be strong and are financed from business banks' net foreign assets. Credits to the non-banking sector in late July were 3.5 billion kuna (EUR473 million), or 4.16 percent, higher than two months before. Total credits at the end of July amounted to 87.4 billion kuna (EUR11.8 billion), a 27.7-percent increase as against July 2001. Loans to citizens and companies continued to grow over June and July. Loans to citizens grow faster than those to companies. Loans to citizens in late July grew by 39.5 percent as against July 2001, while those to companies rose by 20.1 percent. (hina) ha