Cash general purpose loans continue to record two-digit, albeit slower, annual growth, totalling HRK 51.4 billion at the end of July 2019, up 11.6% on the year, according to Raiffeisenbank Austria (RBA).

With a share of 39.4%, cash general purpose loans are the second most significant type of household loans, RBA says, adding that the slowing down is likely a result of the central bank’s recommendation regarding the approval of non-housing loans.

At the end of July, household loans totalled HRK 129.7 billion, up 6.3% on the year and 0.4% on the month, according to central bank figures.

Positive annual growth rates have lasted since September 2017, RBA says.

Housing loans account for 42.4% of household loans, amounting to almost HRK 60 billion at the end of July.

Loans in the domestic currency accounted for 53.6% of household loans at the end of July, totalling HRK 69.5 billion, up 11.7% on the year. The annual growth has lasted since 2013. Foreign currency household loans totalled HRK 60.2 billion, down 0.3% on the month and up 0.9% on the year.

These lending trends are the result of higher salaries and employment, low financing costs and high consumer optimism, RBA says.

(€1 = HRK 7.4)