The total amount of loans is also on the decline, except for cash all-purpose loans
Total loans to the resident sector at the end of April amounted to 15.7 billion Euro, showing a drop on a monthly and yearly level, by 0.3 and 7.8%, marking ten months of decline in such loans in a row at the yearly level, sharply influenced by the conversion of loans in Swiss Francs, Croatian National Bank (HNB) data shows, Tportal.hr reports on June 21, 2016.
According to HNB data, during the procedure of conversion and partial write off of resident loans index in the Swiss Franc, from the end of November 2015 to the end of April 2016, banks have written off a total of 760 million Euro.
As a result, housing loans, whose share in total loans to residents is 45%, were lower in April on a monthly level by 1.1% or 78.6 million Euro, while at the yearly level they fell 14.9% or 1.23 billion Euro, to 7.01 billion Euro.
Raiffeiesenbank Austria (RBA) analysts point out that in the currency structure of loans to residents foreign currency dominates at 64%, hence the strengthening of the Kuna compared to Euro on a yearly level by 1.5% additionally affected the fall of loans shown in the domestic currency.
After housing loans, the second place in the structure of total loans to residents, with a 34% share, belongs to the group of cash all-purpose loans which reached at the end of April nearly 5.33 billion Euro. Compared to the previous month they are up by 26.6 million Euro, 0.5%, while at the yearly level they grew by 96.5 million Euro, or 1.8%.
Considering that in this credit line the loans with a currency clause make up a half, the mentioned currency differences have partially softened their growth at the monthly and yearly levels.
Except for cash all-purpose loans, the yearly decline in total loans to residents was aided by all other components of loans according to their purpose: consumer, housing, mortgage, car, credit card and overdraft, while RBA analysts state that , considering the still weal labour market, in the following months no significant turnarounds are expected in credit demand by the resident sector.
