novac, euro.jpg
Photograph: Photo by Emilian Robert Vicol, used under CC BY

The proportion of non-performing loans in Croatia reached 17.05 per cent at the end of September, the latest figures from the Croatian National Bank (HNB) show.

Partly recoverable and completely irrecoverable loans accounted for HRK 47.6 billion out of the total of HRK 279.2 billion in loans. Compared with the previous quarter, the proportion of bad loans was reduced by 0.29 percentage points, while compared with the end of 2014 it was reduced only marginally, by 0.01 percentage point.

At the end of September the share of non-performing loans in household loans was 12.1 per cent, while their share in corporate loans was 31.08 per cent. Of HRK 103.2 billion in loans granted to the corporate sector, collection of HRK 32.07 billion was questionable. Household loans totalled HRK 56.3 billion, of which collection of 9.35 per cent or HRK 5.26 billion was questionable.

Figures on the quality of loans broken down by currency showed an above average risk of collecting payments for loans denominated in the Swiss franc and loans denominated in the kuna without a foreign currency clause.

Of HRK 23.6 billion in loans pegged to the Swiss franc, bad loans accounted for 19.68 per cent or HRK 4.65 billion. Most of these loans, as many as 70.4 per cent, were corporate loans. At the end of September companies had HRK 1.3 billion in CHF-indexed loans and collection of HRK 921.5 million was uncertain. Households had HRK 22.02 billion in CHF-denominated loans, of which 16.57 per cent or HRK 3.65 billion was categorised as partly recoverable and completely irrecoverable.

The proportion of bad loans among loans approved in the domestic currency without a foreign currency clause was 18.29 per cent. Out of the total of HRK 78.5 billion loans in kuna, HRK 14.3 billion was partly recoverable or completely irrecoverable.

Most of the loans were tied to the euro. Such loans totalled HRK 174.1 billion, of which collection of HRK 27.7 billion or 15.91 per cent was questionable.

Related stories

Bank lending down 5.7% in March y-o-y

Bad loans account for 16.56 pct of lending in 2015

Fall in lending activity continues in January

Total lending down 6.4% in July

Bank lending down 0.6% y-o-y

Latest news

Germany's record surplus sets off debate about using extra cash

Germany's budget surplus continued to grow last year, reaching its highest level since the reunification of East and West Germany in 1990 and setting off a debate about what to do with the extra cash.

Croatian PM says gov't has no influence on appointment of Podravka managers

Prime Minister Andrej Plenkovic said on Thursday the appointment of new management board members in the Podravka food company was in the remit of the supervisory board and that neither he nor the ministers had any influence on talks at the supervisory board.

Australian archbishops call abuse probe a 'catastrophic failure'

The Australian Catholic Church's handling of a child sex abuse scandal has been a "catastrophic failure" and amounted to "criminal negligence," blasted the country's archbishops Thursday.

WHO: More than 300 million suffer from depression as world ages

The global number of people with depression has risen by 18 per cent to 322 million in the past decade, the World Health Organization (WHO) said Thursday, demanding greater attention for high-risk groups.

Ukrainian lawmaker, vocal critic of Russian government, abducted

Ukrainian lawmaker Oleksiy Honcharenko, an adamant critic of the Russian government, has been abducted by a "group of unknown people," state media reported Thursday, quoting the Odessa regional prosecutors office.

Australian ex-PM slams Netanyahu for 'torpedoing' peace process

Former Australian premier Kevin Rudd has accused Israeli leader Benjamin Netanyahu of "torpedoing" peace negotiations in the Middle East.

Weekly "Novosti" dismisses NGO's accusations

The newspaper today also dismissed all accusations the NGO presented at a recent news conference, and retorted that the NGO's criticism were ill-intended and untrue accusations.

Sixteen killed in fighting between army and rebels in Congo

Sixteen fighters from the reactivated Congolese rebel movement M23 have been killed during two days of fighting with the army in the east of the country, a military spokesman said Thursday.

Maltese FM on behalf of EU calls for preservation of stability in BiH

Maltese Foreign Minister George Vella said in Sarajevo on Thursday that his country, as the current chair of the European Union, closely followed the developments in Bosnia and Herzegovina (BiH) and other parts of the Western Balkans.

Croatia-Hungary committee on minorities meets after four-year hiatus

The Croatia-Hungary Intergovernmental Committee for the implementation of the agreement on the protection of the rights of the respective ethnic minorities met in Zagreb on Thursday after a four-year hiatus.

Syrian rebels claim full control of al-Bab, defeating IS

Syrian rebels backed by Turkey said Thursday they are fully in control of al-Bab, wresting it from Islamic State after a military campaign that began in November and cost hundreds of lives.

HURS says Croatia fails to create conditions for long-term growth

The Croatian Association of Workers' Trade Unions (HURS) warned on Thursday that a report which the European Commission released on Wednesday showed that Croatia had failed to create conditions for a long-term economic growth, adding that the situation in the Podravka food company suggested the continuation of the trend of shutting down jobs in the production sector.