CNB Council: Liquidity in the system remains very high

Published: 8/3/2017

At the today's session, the Council of the Croatian National Bank analysed recent monetary and economic indicators and adopted several decisions within its field of responsibility.

Having increased sharply during the summer months, economic activity continued to rise in late 2016, albeit at a slower pace, growing at an annual rate of 2.9%. The annual inflation rate continued the upward trend, reaching 0.9% in January. While maintaining the stability of the exchange rate of the kuna against the euro, the CNB continued to pursue a strongly expansionary monetary policy in early 2017 so that average excess liquidity hit historical highs in January and February. The external debt to GDP ratio decreased significantly in 2016, with the result that external imbalances were mitigated. Available data suggest that the general government deficit for 2016 could be much lower than in the previous year and stand considerably below the revised budget's deficit.

Slatinska banka d.d. Slatina was authorised to provide financial services related to the issue and custody of financial instruments.
In addition, the CNB Council accepted the proposal of the Supervisory Board of Banka Kovanica d.d., Varaždin to reappoint Nicola Ceccaroli as Chairman and Ivan Mužić as Member of the Bank's Management Board. The Council also approved the proposal put forward by the Supervisory Board of Podravska banka d.d., Koprivnica to extend the mandate of Julio Kuruc as Chairman and Davorka Jakir as Member of the Bank's Management Board.

The Council also adopted a decision to release into circulation kuna and lipa coins with the minting year 2017 on 15 March 2017.