Thursday, 21 October 2021

Croatia's Gross International Reserves Reach Record €24.4 bn

ZAGREB, 21 Oct 2021 - Croatia's gross international reserves reached €24.4 billion in September 2021, their highest level to date, increasing by €300 million or 1.3% from August, according to the data provided by the Croatian National Bank (HNB).

The increase was mostly the result of the government's foreign currency deposits with the HNB following the disbursement by the European Commission of €818.4 million as an advance payment for the purposes of the National Recovery and Resilience Plan.

Gross international reserves have increased by €5.4 billion or 28.6% since the start of the year.

All adequacy indicators of the country's gross international reserves suggest that they are sufficient to ensure the smooth running of the central bank's monetary policy.

Net reserves remained almost the same as in August, at €19.5 billion, the HNB said.

For more about politics in Croatia, follow TCN's dedicated page.

Thursday, 29 April 2021

Croatian National Bank: Banks Still Do Not See Climate Change As Serious Threat to Business

ZAGREB, 29 April, 2021 - Most banks in Croatia still do not see climate change as a serious threat to their business, a survey carried out by the Croatian National Bank (HNB) showed on Thursday.

The survey was presented as part of an online conference called "The Role of Banks in Greening Our Economies", organised by the HNB and the European Bank for Reconstruction and Development (EBRD).

The survey, carried out among 20 Croatian banks, showed that the banks did not see climate change as an immediate and serious threat to their business.

Only one bank said that climate change would have a generally significant impact on the Croatian banking system, 11 banks said that the impact would be moderate, while eight said that it would be insignificant.

Only two banks have a climate change-related strategy included in their overall business strategy, expressing concern about risks and anticipating possible changes to the regulatory framework. On the other hand, 15 banks said they were waiting for the regulators to take the initial steps in this regard.

Responding to the question about risk materialisation, 10 banks said that climate risks would not materialise in the near future, while 11 said they were not attaching major importance to exposure to climate change and environmental risks to their portfolio.

Physical risk includes the financial impact of climate change, and five sectors in Croatia are particularly vulnerable to it - tourism, agriculture, forestry, fisheries and energy distribution. More than a quarter of Croatian banks' exposures to non-financial institutions concern these sectors, mostly tourism, the survey showed.

However, none of the banks has so far assessed its exposure to climate and environmental risks, citing lack of reliable data and methodology as well as lack of qualified staff.

The sectors facing the biggest transition risk from climate change are transport and traffic, agriculture, motor vehicles, energy and oil products, and construction.

Only 9 banks offer green product to their customers

Most banks recognise opportunities brought by the transition to a low-carbon economy, with three-quarters of them saying they could benefit from this transition by financing green projects. However, only nine banks said they were offering a green product to their customers, such as loans for the energy renovation of buildings or the purchase of electric vehicles.

 HNB Governor Boris Vujčić said in his opening remarks that both the HNB and EBRD had acknowledged their responsibility for highlighting the role of banks in the climate transition. He recalled the Paris climate change agreement of 2015, which has been ratified by 189 countries, saying that it set ambitious goals to reduce greenhouse gas emissions and prevent further global warming.

For more about business in Croatia, follow TCN's dedicated page.

Thursday, 1 April 2021

Croatia's General Government Debt Up to 89.1% of GDP in 2020

ZAGREB, 1 April, 2021 - Croatia's general government debt reached HRK 329.7 billion at the end of 2020, an increase of 12.6% compared with the end of 2019, with the general government debt to GDP ratio rising to 89.1%, the latest Croatian National Bank (HNB) data shows.

At the end of December 2020, the general government debt increased by HRK 526 million (+0.16%) from the previous month and by 36.8 billion (+12.6%) from December 2019.

At the end of last year the total debt amounted to 89.1% of the annual GDP, compared to 72.8% at the end of 2019.

The general government debt to GDP ratio had been falling since 2014, when it stood at about 85% of GDP. After decreasing to 72.8% of GDP in 2019, the needs for financing the measures to combat the coronavirus outbreak and the GDP decline led to the general government debt to GDP ratio increasing to 89.1% in 2020.

The general government debt includes the domestic and external debt components of central government, social security funds and local government.

HNB analysts noted that the debt increase was mostly due to a rise in the domestic debt component, which had gone up by HRK 4.1 billion (+1.9%) since November 2020 and by HRK 26.0 billion (+13.2%) since December 2019.

At the end of December 2020, the general government debt totalled 223.7 billion on the domestic market, while the external debt component amounted to nearly HRK 106 billion. The external debt component fell by HRK 3.6 billion (+3.3%) month on month and increased by HRK 10.8 billion (+11.3%) year on year.

The general government debt structure is dominated by long-term debt instruments. At the end of December 2020, the debt comprised bonds (64.4%), long-term loans (29.1%), and short-term loans and securities (6.5%). Compared with December 2019, the short-term debt rose by HRK 8.4 billion (+63.1%), while the long-term debt increased by HRK 30.5 billion (+10,9%).

(€1 = HRK 7.5)

For more about politics in Croatia, follow TCN's dedicated page.

Tuesday, 13 November 2018

Ivan Strinić Gets Green Light After Heart Condition Diagnosis

Ivan Strinić will make a return to the football pitch! 

Wednesday, 11 July 2018

Boris Vujčić to Be Re-Elected as Central Bank Governor

ZAGREB, July 11, 2018 - The parliament's Elections, Appointments and Administration Committee and Finance and State Budget Committee on Wednesday supported by a majority vote the proposed candidates for the leadership of the Croatian National Bank (HNB).

Wednesday, 21 March 2018

Croatian National Bank Loses 3% of Assets

ZAGREB, March 21, 2018 - After reaching a record nominal high of 127 billion kuna in December 2017, total assets of the Croatian National Bank (HNB) declined by 3.3% or 4.2 billion kuna to 123 billion kuna in January 2018, while increasing by 9.6% or 10.8 kuna billion in comparison with January 2017, Raiffeisenbank (RBA) says in a report.

Thursday, 22 February 2018

Eight Systemically Important Banks Named

ZAGREB, February 22, 2018 - The Croatian National Bank (HNB) on Thursday published a reviewed list of systemically important credit institutions in the country, which includes eight banks.

Wednesday, 8 March 2017

Croatian National Bank Issues Warning about OneCoin

OneCoin is a so-called cryptocurrency.

Sunday, 27 December 2015

Will New Government Try to Influence the Croatian National Bank?

How will the relationship be between the new government and the Croatian National Bank?

Thursday, 22 October 2015

Croatian National Bank to Build a Large Underground Vault

Croatia to get its own Fort Knox.

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