ZAGREB, Dec 19 (Hina) - According to the Croatian National Bank (HNB) the 2002 business year was successful. Commenting on banks' announcements that they would grant loans without a currency clause and under low interest rates for
domestic debt accumulation next year, the HNB said this was the greatest success of the monetary policy.
ZAGREB, Dec 19 (Hina) - According to the Croatian National Bank
(HNB) the 2002 business year was successful. Commenting on banks'
announcements that they would grant loans without a currency clause
and under low interest rates for domestic debt accumulation next
year, the HNB said this was the greatest success of the monetary
policy. #L#
The monetary policy projection for 2003 is based on the situation in
2001 and 2002, when a very high increase of monetary aggregates (25-
30 percent annually) was marked along with a stable exchange rate
and low inflation rate. In order to prevent currency appreciation,
the HNB bought EUR700 million in 2002, which is twice as much as in
2001, HNB governor Zeljko Rohatinski said.
The expansion of solvency had an impact on an increase in imports
and it is assessed that foreign trade deficit in 2002 would amount
US$1 billion more than the year before.
The 2003 monetary projection foresees a lower increase of monetary
aggregates. The plan for 2003 includes a 15-percent increase of
money supply and loans, which will enable the continuation of the
economic growth.
Governor Rohatinski says the monetary policy in 2003 will leave
enough space for an increase of Gross Domestic Product, more than
four percent. According to him, a stable exchange rate will
guarantee a 2-2.5 percent inflation rate.
(hina)it