At its session today, the Council of the Croatian National Bank reviewed recent monetary and economic developments, adopted the monetary policy projection for the 2017 to 2020 period and analysed a report on the banking system condition in the last quarter of 2016.
Economic developments deteriorated slightly in early 2017 compared with the end of 2016. The volume of industrial production and construction works declined and trade stagnated. Nevertheless, labour market recovery continued, and consumer confidence and business optimism remained relatively high. The annual consumer price inflation rate continued to rise, reaching 1.4% in February. Maintaining the stability of the kuna exchange rate against the euro, the CNB continued to pursue expansionary monetary policy in the first quarter of 2017, with the result that average excess liquidity reached historical highs in March. Despite a deterioration in the balance of payments in the last quarter of 2016, the current and capital account surplus remained high throughout the year and external debt decreased further. Strong fiscal consolidation and real activity growth caused the public debt to GDP ratio to drop to 84.2% at the end of 2016.
Also at today's session, the CNB Council gave its approval to OTP banka d.d., Zadar for the acquisition of a qualifying holding of 100% in the capital of Société Générale – Splitska banka d.d., Split. The Council also approved the decision made by the Supervisory Board of Société Générale – Splitska banka d.d., Split to appoint Slaven Celić as Chairman and Balász Balogh and Balázs Olchváry as Members of the Bank's Management Board.
In addition, the CNB Council approved the appointment of Fikret Kartal as Member of the Management Board of KentBank d.d., Zagreb.