Overnight deposit rate reduced

Published: 9/3/2011

At its today's session, the Croatian National Bank Council decided to reduce the CNB interest rate on banks' overnight deposits from 0.5% to 0.25%. This decision was motivated by interest rate movements in the market and was intended to encourage banks to place their surplus liquidity in other instruments rather than deposit it with the central bank, and thus make it more beneficial for the economy. Moreover, remuneration on the allocated kuna component of reserve requirements was abolished, as had been done earlier with remuneration on the foreign exchange component of reserve requirements.

The Council also reviewed the latest monetary and economic trend indicators, as well as the state of the banking system over the last quarter of 2010. Furthermore, it endorsed a report on the last year's international reserve management, showing that the reserves stood at EUR 10.66 billion at end-2010, EUR 285 million more than at end-2009.

The Council approved the decisions of the supervisory boards of several banks on new appointments to their management boards: Zvonko Agičić was appointed as president and Dubravka Filipčić as member of the Management Board of A štedna banka malog poduzetništva d.d., Zagreb; Ružica Šarić was reappointed as member of the Management Board of Imex banka d.d., Split; Jozo Matas was appointed as president of the Management Board of Partner banka d.d., Zagreb. The terms of office of Anto Pekić as president and Zdenko Šošić as member of the Management Board of Primorska banka d.d. Rijeka were extended, and Marko Čičin-Šain was appointed as new member of that bank's Management Board.

According to the CNB Council's decision, kuna and lipa coins bearing the year of mint "2011" will be put into circulation.