In June 2018, total loans granted to businesses in Croatia for the purpose of funding their operating assets and investments amounted to 65.7 billion kuna (€8.8 billion), up by 680.5 million kuna (€91.8 million) or 1 percent, than in June 2017, according to data released by the central bank.

Raiffeisenbank Austria (RBA) analysts said that June was the second consecutive month recording a year-on-year rise in the value of loans to businesses, following a long negative streak that had lasted almost without interruption since May 2012.

Compared to May 2018, loans in June rose by 655.5 million kuna (€88.4 million) or 1 percent.

Loans for investments at the end of June totalled 31.6 billion kuna (€4.2 billion), or 1.3 percent up year-on-year, and 0.2 percent up month-on-month. Loans for operating assets amounted to 34.1 billion kuna (€4.6 billion), 0.8 percent up year-on-year, and 1.3 percent up month-on-month.

“Considering the expected continuation of favourable economic trends and investment recovery, we also expect demand for loans by non-financial businesses to recover. The high liquidity in the financial system helps lower interest on new loans, which should increase loans,” RBA analysts said.

(€1 = 7.41 kuna)

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