COMMERCIAL BANKS' CREDIT ACTIVITY CONTINUES TO STRONGLY GROW

ZAGREB, Nov 4 (Hina) - The credit activities of Croatian commercial banks continued to be strong in this year's third quarter, with 89.5 billion kuna (EUR11.9 billion) worth of loans granted by the end of September, while foreign currency deposits experienced a renewed growth as well, according to data the central bank released on Monday. #L# The fastest growth was recorded in loans granted citizens, while the growth of those for enterprises was much slower. Citizens' loans at the end of September amounted to 39.3 billion kuna, including 11.3 billion worth of housing loans. The annual growth rate in citizens' loans in this year's first eight months was 45.2 percent, as against 29.3 percent last year. With loans for companies, this rate was the same as in 2001 - 21.3 percent. The central bank recalls that the citizens' sector includes craftsmen as well, and that companies also use other forms of financing. At the end of August citizens' loans accounted for 46.8 percent of all loans, an increase of three percent as against the same time last year, while loans approved to public companies accounted for 4.3 and those to other companies for 48.9 percent. In the structure of loans, those with a currency clause dominate with 68.2 percent of all approved loans. Loans in the domestic currency account for 18.6 and those in foreign currency for 13.2 percent of all loans. The growth in commercial banks' foreign currency liabilities is mostly due to the deposits of foreign banks in their Croatian branches, which they make to finance the strong credit activity and take a place on the Croatian banking market, where the yield is much higher than on the international market. According to the central bank, foreign bank's loans and deposits in Croatian branches grew by US$500 million in this year's first eight months, which was twice the figure recorded in the first nine months of 2001. (hina) ha sb