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Central bank reduces reserve requirement from 15 to 13.5 pct

Autor: half
ZAGREB, April 11 (Hina) - The Croatian National Bank (HNB) Council adopted on Wednesday a proposal that the reserve requirement be reduced from 15 to 13.5 per cent and that funds received from five multilateral development banks be excluded from the calculation basis, whereby banks will have at their disposal about HRK 4.1 billion and a little over EUR 110 million from their reserves.

A decision to that end will go into force after May 9.

It was made on the assumption that commercial banks will direct about HRK 4 billion from their reserves and as much from other sources, in cooperation with the Croatian Bank for Reconstruction and Development (HBOR), into economic development, notably programmes contributing to the improvement of the country's balance of payments, with better lending conditions.

The HNB and representatives of the eight biggest commercial banks and the HBOR on April 4 agreed measures to ensure HRK 8 billion for economic recovery.

The HNB said certain effects of today's decision could be expected by the end of the year and especially in 2013, adding that for that to happen without undesired consequences for price and exchange rate stability, everyone else involved in the project must give their all and that appropriate economic policy measures must be adopted.

Also today, the HNB Council adopted an annual report on the central bank's performance in 2011 and monetary policy guidelines for 2012 and 2013.

(EUR 1 = HRK 7.48)

(Hina) ha

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