The total volume of loans granted by the end of May 2016, according to the latest figures from the Croatian National Bank (HNB), was HRK 266.7 billion, marking the continuation of a downward trend that began in November 2012, analysts at Raiffeisenbank Austria (RBA) say.
The total volume of lending in May 2016, compared with May 2015, dropped by HRK 15.1 billion or 5.3%. However, lending increased on a month to month basis for the first time since September 2015, by HRK 500 million or 0.2%.
The comparatively sharp drop in lending on the annual level was partly due to the conversion of Swiss franc-pegged loans to euro loans or the write-off of such loans and further household deleveraging. The household sector saw a sharp annual decrease in loans of 8% or HRK 10 billion.
RBA analysts note that household deleveraging has been going on for 11 straight months. Compared with April, household lending increased by 0.1% or HRK 145.5 million to HRK 118.1 billion at the end of May.
Corporate deleveraging has also continued, with loans to this sector amounting to HRK 88.9 billion at the end of May. Although corporate loans increased by HRK 236 million or 0.3% from April 2016, they fell by HRK 3.4 billion or 3.7% from May 2015, confirming the deleveraging trend that began in mid-2012.
Loans to central government dropped by 2.9% on the annual level and were down for the fourth consecutive month, while increasing by 0.3% from April. At the end of May they amounted to HRK 50.9 billion, making up 19% of total lending.
(EUR 1 = HRK 7.481429)