Operation "Pliva" successfully completed: exchange rate and interest rates remain stable

Published: 24/10/2006

The financial transactions involved in the Pliva takeover were successfully executed on 24 October before the end of the working day, causing neither disruptions in the foreign exchange and monetary systems nor significant exchange rate and interest rate fluctuations, while enabling the undisturbed functioning of both the Large Value Payment System and National Clearing System.

The central bank's participation in this large-scale operation was thus fully justified, with no monetary policy measures or instruments suspended, as proof of the transparent and smooth operation of the system.

This was primarily the result of a thorough groundwork and close cooperation of all the key participants in the transaction: buyer and seller, banks, Central Depository Agency, Croatian Agency for Supervision of Financial Services, Croatian National Bank and others.

The CNB's main task here was to define the method and order of executing the financial transactions. The central bank participated in the operation implementation by converting EUR 209m into kuna and by withdrawing on its completion HRK 1.045bn from the system, generated by repo operations previously conducted with the Croatian Postal Bank.

Finally, as funds of non-residents were taken out of the country, no related adverse effects will be produced on either the foreign exchange or money market in the forthcoming period.