Comments on monetary developments for August 2020

Published: 30/9/2020

Total placements of monetary institutions to domestic sectors (excluding the central government) fell by HRK 0.5bn (transaction-based) in August. As shown by CNB Comments on monetary developments for August this year, of total placements, the growth in total loans in August (transaction-based) slowed down to 3.9% relative to August of the previous year, down from 4.4% annual growth rate in July. The transactions show changes that exclude the effects of exchange rate changes, securities price adjustments, reclassification and write-off of loans, including the sale of loans in the amount of their value adjustment. In August, loans to trade and manufacturing fell the most relative to July, which also slowed down the growth in loans to corporates on an annual level, from 5.5% in July to 4.7% in August, as well as growth in total loans.

Total loans stood at HRK 228.3m nominally in August, with household loans standing at HRK 135.2m and corporate loans at HRK 84.8m. As regards household loans, the annual growth in loans to this sector slowed down slightly, from 3.9% in July to 3.8% in August, influenced by a slowdown in the growth in general-purpose cash loans (from 2.8% to 2.0%), while the growth in housing loans continued to accelerate (from 8.0% to 8.3%) driven by borrowing for the reconstruction of housing units damaged in the earthquake. The monthly growth in housing loans (August relative to July) slowed down to 0.4%, while general-purpose cash loans fell by 0.2%.

Comments on monetary developments for August 2020