At its session today, the CNB Council adopted the Decision on the determination of the lower bound of the general reserves of the Croatian National Bank and the Decision on the general reserves of the Croatian National Bank as at 1 January 2021.

The decisions were adopted pursuant to the provisions of the Act on Amendments to the Act on the Croatian National Bank (Official Gazette 47/2020), which enter into force on 1 January 2021 and mostly relate to the application of Guideline (EU) 2016/2249 of the European Central Bank of 3 November 2016 on the legal framework for accounting and financial reporting in the European System of Central Banks (ECB/2016/34) when preparing financial statements of the Croatian National Bank as of 1 January 2021.

The CNB Council therefore adopted a decision determining the lower bound of the CNB’s general reserves. Also, from the part of the CNB’s general reserves as at 1 January 2021, established were provisions for financial risks, a revaluation account for the purpose of revaluation of securities that are not held to maturity and a revaluation account for the purpose of revaluation of items of assets, liabilities and capital, and off-balance sheet items that are denominated in or indexed to foreign currencies.