The CNB continues to keep stability of the exchange rate and high liquidity

Published: 11/11/2015

At its today's session, the Council of the Croatian National Bank examined recent indicators of economic and monetary developments and the Semi-annual information on the financial condition, the degree to which price stability has been achieved and the implementation of monetary policy in 2015, which will be forwarded to the Croatian Parliament.

Following considerable heightening of economic activity in the second quarter of this year, recent indicators suggest that the economy continued to grow in the July to September period, favourably impacting the labour market. The annual rate of consumer price inflation fell in August and September, mostly owing to a fall in the price of petroleum products. The wide-ranging measures taken by the Croatian National Bank eased the pressures on the foreign exchange and money markets caused by legislative changes regulating the conversion and partial write-off of citizens' loans with a currency clause in the Swiss franc. These measures included a foreign exchange intervention which increased foreign exchange liquidity, reverse repo operations which improved kuna liquidity in the system, the abolishment of the obligation to purchase compulsory CNB bills and a reduction in the interest rate on Lombard loans and the discount rate. Household and corporate deleveraging continued to mark monetary developments.

At this session, Steiermärkische Bank und Sparkassen AG, Graz and Erste Group Bank AG, Vienna obtained the approval from the CNB Council to acquire 30% or more or 50% or more, respectively of the initial capital of Erste&Steiermärkische bank d.d. Rijeka. With this transaction, the indirect holders of bank capital become direct holders, simplifying the ownership structure of the bank and enabling better coordination of business processes through a reduced number of involved undertakings.

The CNB Council approved the decision of the Supervisory Board of Slatinska banka d.d. Slatina on the appointment of Marko Brnić as member of the Management Board of that bank.

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