CNB Council: Expansive monetary policy continues

Published: 7/10/2014

The Croatian National Bank will continue to pursue an expansive monetary policy and will continue to maintain exchange rate stability. This is the message sent by the CNB Council session chaired today by Deputy Governor Relja Martić. By keeping high system liquidity, the central bank is trying to ensure as favourable as possible conditions for financing the economy which, showing no signs of revival, prompts estimates of stagnation in the remaining part of the year and even possible worsening of some key economic activity indicators.

The CNB Council decided to repeal the 100% allocation of the foreign currency component of the reserve requirement calculated on foreign currency funds received from non-residents and legal persons in a special relationship with a bank. These funds will now be included in reserve requirements met by daily balances of liquid claims and will not, unlike up to now, be allocated to a special account with the central bank. The amount of foreign currency allocated to the reserve requirement account with the CNB on this basis currently stands at a kuna equivalent of approximately HRK 610 million.

The CNB Council agreed with the decision of the Supervisory Board of Banco Popolare Croatia d.d. Zagreb to extend the term of office to Management Board Member Mirjana Vidan and with the decision of the Supervisory Board of Hypo Alpe-Adria-Bank that Tea Martinčić, currently a Management Board Member, takes over the function of the President of the Management Board of that bank.