ZAGREB, March 14, 2020 – The Croatian National Bank (HNB) on Friday said that the growth of the country’s GDP would probably deviate from the initial forecasts to a considerable degree due to the outbreak of coronavirus, and the bank will take measures to help the economy to overcome the situation.
One of the measures which the HNB is going to conduct is a structural operation for five years at the interest rate of 0.25%, and this will be carried out on Monday, 16 March.
In addition, the HNB has started buying state bonds with the aim of maintaining stability on the market of state securities, the HNB Council said in a press release on Friday after the council’s meeting.
On Thursday, the HNB stated that “in accordance with the communication of competent institutions so far, with the aim of preventing the coronavirus disease spreading, and in compliance with the measures undertaken at the level of the Republic of Croatia, the CNB (HNB) has started the implementation of measures, which apply to its key tasks, employees, business processes and business premises, that basically ensure the smooth and regular performance of all the key functions of the Croatian central bank, as well as of credit institutions supervised by the CNB.”
“The measures are simultaneously directed at minimising the risk of contagion with the COVID-19 virus and its spreading.”
If needed, the central bank will also apply appropriate and timely measures to ensure the continuity of work of its Council, i.e. the continuity of operational decision-making at the level of the central bank.
Supervisory requirements were sent to banks for the introduction of measures for a smooth and safe operation in epidemic conditions.
Within its supervisory function, the HNB “continuously monitors the operation of credit institutions with the main objective to maintain confidence in the banking system and promote and safeguard its safety and stability.”
More coronavirus news can be found in the Lifestyle section.
