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LOANS GRANTED BY COMMERCIAL BANKS TO PRIVATE SECTOR ON INCREASE

ZAGREB, July 28 (Hina) - The volume of credits granted by commercial banks to the private sector rose by 8.1 percent to 65.8 billion kuna in late May as against the start of 2001, read July's bulletin of the Croatian National Bank (HNB). The central bank added that the real rise in loans was 11 percent given that loans with currency clauses and foreign currency loans accounted for over 70 percent of the volume of all loans.
ZAGREB, July 28 (Hina) - The volume of credits granted by commercial banks to the private sector rose by 8.1 percent to 65.8 billion kuna in late May as against the start of 2001, read July's bulletin of the Croatian National Bank (HNB). The central bank added that the real rise in loans was 11 percent given that loans with currency clauses and foreign currency loans accounted for over 70 percent of the volume of all loans.#L# In May, loans given to individual clients rose by 1.4 percent, while loans endorsed for companies fell by 0.5 percent. However, credits granted to companies registered an encouraging increase in the first quarter of this year with the annual increase of 7.8 percent. According to the central bank's analysts, commercial banks are withdrawing means from abroad in order to invest them in Croatia, and this conversion of foreign currencies into the kuna has led to the appreciation of the Croatian national currency. In May, the kuna appreciated to the euro by 3.3. percent. (hina) ms

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