CNB Council: Economic growth continues

Published: 8/6/2016

At the today's session, the Council of the Croatian National Bank analysed recent economic and monetary indicators, adopted the central bank's Annual Report for 2015 and reviewed the Croatian Mint's Work Report for 2015. The Council also adopted several decisions within its field of responsibility.

Real GDP grew by 0.6% in the first quarter of 2016 from the previous quarter due to domestic demand growth, while exports stagnated. Indicators for the beginning of the second quarter suggest that GDP will continue to rise. Consumer prices decreased annually by –1.7% in April, at the same rate as in March, and monthly inflation trends were strongly influenced by a drop in natural gas prices (-18.1%). Monetary policy remained expansionary, with the CNB's second structural reverse repo operation conducted in May. Bank lending trends were positive: placements to domestic sectors were boosted by corporate lending growth in the first four months of 2016 and household lending grew at a higher seasonal rate. Cash fiscal data show that fiscal consolidation continued in the first quarter of 2016.

Pursuant to an amendment to the Decision on reserve requirements, the reserve requirement calculation base will exclude funds received from the European Investment Fund, the European Fund for Southeast Europe and the Green for Growth Fund, Southeast Europe.

Also at today's session, approval was extended to several credit institutions' supervisory boards for the appointment of management board members. Anto Pekić remains and Goran Brajdić is appointed Member of the Management Board of Primorska banka d.d., Rijeka. Igor Repin's mandate as Member of the Management Board of Sberbank d.d., Zagreb is renewed and Ante Babić is appointed Member of the Management Board of Štedbanka d.d., Zagreb. Claudio Cesario, Stefano Gison and Albert Angersbach are appointed Members of the Management Board of Zagrebačka banka d.d. and Tomislav Matić and Sonja Skobe are appointed Members of the Management Board of Raiffeisen stambena štedionica d.d., Zagreb.

UniCredit S.p.A., Milan was granted approval to acquire a qualifying holding exceeding 50% of the capital of Zagrebačka banka d.d., Zagreb.