At its session today, the Council of the Croatian National Bank reviewed recent economic and monetary developments. In the second quarter of 2018, economic growth accelerated at both the quarterly (1.1%) and the annual level (2.9%), reflecting favourable developments in most GDP components. Available high-frequency indicators suggest that the rise in real GDP might slow down slightly in the third quarter. In the second and at the beginning of the third quarter, favourable developments continued in the labour market, although at a slower pace than in early 2018. The annual consumer price inflation rate dropped from 2.4% in June to 2.1% in July, primarily on account of a significant decrease in the prices of clothing and vegetables. The exchange rate of the kuna against the euro depreciated slightly in July and August. Against the backdrop of sustained expansionary monetary policy, interest rates of banks dropped for almost all types of loans in July, while the rise in the placements of banks stagnated at the annual level (4.1%, transaction-based). In the first quarter of 2018, the general government budget deficit equalled that recorded in the same period last year (HRK 1.6bn), while MoF data suggest that in the second quarter revenues grew faster than expenditures on an annual basis.
The CNB Council adopted the report on international reserves management for the first half of 2018, the interim financial reports for the period ending 30 June 2018 and the amendments to the central bank's financial plan for 2018.
The Council of the CNB also issued prior approval for the appointment of the chairperson or a member of the management board in several credit institutions. The former member of the Management Board of J&T banka d.d., Varaždin, Hrvoje Draksler, was approved as the chairman of the Management Board of that bank, while Nera Šunjić, Zvonimir Akrap, Bruno Biuk and Slaven Celić were appointed members of the Management Board of OTP banka d.d., Zadar for the following term of office. Marijan Kantolić was appointed chairman of the Management Board in Samoborska banka d.d., Samobor.
At the session, the CNB Council granted approval to Erste & Steiermärkische Bank d.d., Rijeka to provide the financial service of portfolio management and advice.
Furthermore, the Council of the CNB approved the application of OTP banka d.d., Zadar and Splitska banka d.d., Split for the acquisition of Splitska banka d.d. by OTP banka d.d.
The application of Privredna banka Zagreb d.d., Zagreb and Veneto banka d.d., Zagreb for the acquisition of Veneto banka d.d. by Privredna banka d.d. was also approved by the Council.