At its session today, the Council of the Croatian National Bank reviewed the latest economic and monetary indicators and adopted a monetary policy projection for the following year. Special attention was paid to potential further developments in the domestic and international environments and to the starting points and necessary adjustments of macroeconomic policy in the forthcoming period, which, among other things, crucially determine the limitations of monetary policy and its efficiency in maintaining stability and contributing to the launching of sustainable economic growth.

The Council today also reviewed a report on the banking system's condition and current events concerning Credo banka d.d. undergoing compulsory winding-up proceedings. This financial institution's defaulting for over 21 days in the payment of matured deposits covered by a deposit insurance act has provided the grounds for initiating bankruptcy proceedings, as set forth in the Credit Institutions Act. The CNB Council therefore decided to propose to a competent commercial court to initiate such proceedings and, in order for creditors' interests to be protected, prohibit the use of bank's assets, enforcement, realisation of collateral and any other payments from its account.

The CNB Council gave its approval to Sberbank Rossii, a Moscow based bank majority owned by the central bank of Russia, for indirect acquisition of an over 50 percent equity holding in Volksbank d.d., Zagreb, based on a full takeover of the former parent Austrian bank, Volksbank International AG, by this Russian bank.

The CNB Council approved the proposals of several banks' supervisory boards regarding new appointments or extension of mandates on their management boards. Tanja Šimunović and Boženka Mostarčić were appointed Management Board Members of Hrvatska poštanska banka d.d., Zagreb, Andrea Kovacs-Wöhry was appointed Chairwoman of the Management Board of Volksbank d.d., Zagreb, and Nikolaus Linarić was appointed Management Board Member of Zagrebačka banka d.d., Zagreb. The extension of the mandate was approved for the Chairman of the Management Board of Karlovačka banka d.d., Karlovac, Sandi Šola, and Management Board Member, Marija Trpčić-Reškovac, for the Chairman of the Management Board of Jadranska banka d.d., Šibenik, Ivo Šinko, and for Management Board Members, Marija Trlaja and Mirko Goreta. Božo Prka will remain Chairman of the Management Board of Privredna banka d.d., Zagreb, and Ivan Gerovac, Dinko Lučić and Draženko Kopljar will remain Management Board Members.