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Lending keeps contracting in Croatia

ZAGREB, Feb 4 (Hina) - The lending of banks operating in Croatia contracted by 2.3% to HRK 280.1 billion at the end of December 2014, compared to December 2013, according to the Croatian National Bank's figures, and the contraction is seen by Raiffeisenbank Austria (RBA) as a result of continued deleveraging for 11 months in a row.

"2014 is marked by continued deleveraging, notably in the non-financial corporate sector and in retail banking, as a consequence of weakening credit activity in the conditions of a long-standing recession," RBA analysts say.

In December, lending, expressed in the kuna, went down by 0.3% compared to November 2014 and by 2.3% compared to December 2013.

Household lending totalled 126.5 billion kuna, down by 0.3% from November 2014 or by 0.8% from December 2013. Corporate lending declined by 3.5% on the year to 92 billion.

Lending to the government, state agencies and local self-government, totalling HRK 55.8 billion, went up by 0.6% from November and declined by 0.2% from December 2013.

(EUR 1 = HRK 7.69)

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