In relation to the end of 2013, lending at the end of November 2014 decreased 2%, also confirming the deleveraging trend that intensified since the end of 2012. RBA analysts expect these trends to continue.
The year-on-year decline in lending in the domestic currency was partly cushioned by the weakening of the kuna in relation to the euro and the Swiss franc, given that at the end of November 2014, 73.2% of all loans were pegged to a foreign currency.
The HRK 1.2 billion growth of lending month on month was mainly due to a HRK 400 million increase in lending to the government. The remaining HRK 780 million increase was due to lending to non-financial companies.
Retail lending accounts for more than 45% of all loans (HRK 126.8 billion). In November 2014, retail lending dipped 0.1% on the month and 0.7% on the year. RBA analysts said the last time retail lending went up was in June 2012.
Corporate lending rose 0.7% on the month in November 2014 to HRK 106 billion, but decreased by 3.9% on the year and 2.1% from December 2013, contracting on the year for the 28th straight month.
(EUR 1 = HRK 7.6)