Analysts continue to predict generally positive trends in the financial sector on the basis of continued economic growth.
According to the Croatian National Bank Croatia's general government debt, as calculated by the ESA 2010 methodology and which includes central and local governments and social security funds, topped 287 billion Kuna at the end of April, which is down by 0.3 percent from the previous month. However, in spite of two consecutive months of decline, public debt is still up by 0.8 percent when compared to the end of 2018. Reiffeisen Bank analysts say debt growth was mainly due to the issuance of bonds in the domestic capital market in February.
Further data from the national bank indicates that the total deposits with commercial banks in the country continues to grow on both monthly and annual levels, surpassing 290 billion Kuna at the end of June. This represents a 0.8 percent increase from the previous month, and a 5.2 percent increase from June of last year.
However, total savings declined slightly both on a monthly and annual basis, down by a marginal 0.03 percent from the previous month and by 0.2 percent on an annual basis. And while the negative trend in savings has slowed to a crawl, savings has hit its lowest level since June of 2014. For the most part savings are held by private citizens, who amount for 80 percent of total savings, the majority of which is in foreign currency deposits, primarily Euros.
According to bank analysts, the trend of continued economic growth and growth in disposable income suggests continued growth in total bank deposits.
- Chief State Prosecutor Dražen Jelenić resigns
- Zoran Milanović becomes Croatia’s fifth president
- Parliament debates law on Vukovar as a special place of homeland piety
- Chief State Attorney Jelenić expected to resign over Freemason issue
- Defence Ministry signs 38 procurement contracts with Croatian companies
- Parliament’s Defence Committee approves Robert Hranj as new Chief of General Staff