The highest growth was observed in cash credits, while housing stagnated due to emigration. In the second half of 2018, interest rates might be stabilised, and the Overhaul Law could negatively affect creditworthiness.

At the end of 2016, we were surprised by a surplus of 13 billion kuna on the money market, and in recent days of 2017, the liquidity surplus reached a record 23 billion kuna. Although interest rates were not additionally adjusted due to this, bankers currently have their hands full with calculating lower interest rates tied to the national reference rate, which will be applied from 1 January, and will be visible on annuities in February. Will the trend of falling interest rates persist and what year awaits us? Based on what bankers have answered, we could paraphrase the title of a book: Good, Beautiful – In 2017 in banking, despite high growth in reservations due to Agrokor, positive trends were profiled.

The growth of new credits to individuals began, and the modest trend of growth in new credits to businesses has been noticeable since 2016. Interest rates on credits continue to fall, with the most pronounced decrease being in housing credits – according to the Croatian Association of Banks, noting that the growth of interest rate margin has been halted. They predict the continuation of lower interest rates until the impact of falling risk premiums for the Croatian market and interest rates on deposits and growth in demand is exhausted. – In the second half of the year, interest rates might be stabilised, if there are no changes in relations on the capital markets in the country and environment, primarily in the EU region – forecast the HUB. They point out that banks are currently intensifying market competition, they are highly capitalised and prepared to respond to any healthy demand for credits with interest rates at the lowest in history. However, the numbers so far do not follow this logic when it comes to housing credits, which are still in the red, and credit growth in individuals is again based on consumption – the growth of cash credits, and that is to existing clients. Bankers explain this with negative demographic trends because young people are leaving Croatia, and strangely they also refer to the new overhaul law, which is not yet in sight, but will, they say, partially tighten the creditworthiness of some clients for long-term credits.

Companies are partially already over-indebted and often directly finance themselves abroad, on the capital market, or through factoring. What offer do banks have? Zagrebačka banka, for example, currently approves residential credits with a rate of 3.80 %, fixed for the first five years, and 4.15% in the course of repayment. For euros, the interest rate is 3.20 and 3.75%. These conditions apply to refinancing from other banks as well. Non-purpose credits are approved with an interest rate of 6.9% for euros and 7.45% for kunas. Until the end of January 2018, they also have an offer of secured credits in euros with a fixed interest rate of 5.8%.

Source: vecernji.hr

About us

Information

Services

About us

Information

Services