CNB Council: CNB allocates HRK 483m to the state budget

Published: 11/5/2016

At its session today, the Croatian National Bank Council examined the latest monetary and economic developments and adopted several decisions within its scope of responsibility.

Economic activity continued to grow in the beginning of 2016, after having decreased temporarily at the end of the previous year. This is confirmed by monthly indicators, pointing to sharp increases in industrial production, construction and retail trade as well as to continued favourable developments in the labour market. Consumer prices dropped at an accelerated annual rate in March on the back of energy price trends, while the decrease in core inflation decelerated. Despite the strongly expansionary stance of monetary policy, the kuna to euro exchange rate appreciated slightly at the end of April from the end of 2015. Bank placements increased moderately in the first quarter of 2016, primarily due to a pick up in corporate loans, while placements to households, excluding the effect of a partial write off of Swiss franc loans related to the conversion process, held steady. Cash fiscal data show the continuation of favourable fiscal developments in the beginning of 2016 after the strong consolidation in 2015.

The CNB Council adopted the Semi-annual Information on the Financial Condition, the Degree of Price Stability Achieved and the Implementation of Monetary Policy for the second half of 2015 as well as the CNB's Financial Statements for the previous year, on which an opinion was issued by an independent external auditor. In 2015, the central bank's net profit was HRK 2.03bn. Pursuant to legal regulations, HRK 483m of this amount will be allocated to the state budget and the remaining amount – the unrealised part of profit from exchange rate changes – will be transferred to central bank's general reserves.

The CNB Council adopted two decisions bringing the rules of operation of the Croatian Large Value Payment System and the National Clearing System in compliance with the provisions of the Credit Institutions Act and the Act on the Resolution of Credit Institutions and Investment Firms. In addition, a decision was adopted to put into circulation, on 23 May 2016, kuna and lipa coins bearing the mint year 2016.

The members of the CNB Council approved the decision of the Supervisory Board of Prva stambena štedionica d.d. Zagreb to reappoint Antonija Matošin as Chairperson of the Bank's Management Board and to appoint Darija Hejna as Management Board Member. Istarska kreditna banka d.d. Umag was granted authorisation to issue electronic money.