Croatian Banking Association president Zdenko Adrovic said on Friday banks would play a key role in reviving economies and achieving financial stability during the Covid-19 pandemic.

Banks will ensure sufficient liquidity and support quality investment aimed at job creation, he said in Rovinj at a meeting of central bank governors and bankers from the region organised by the Lider business magazine.

“It is encouraging that banks, despite the pandemic, have maintained credit activity with historically low interest rates and quality borrowing conditions,” said Adrovic.

By July, bank lending reached HRK 234 billion, up 3.8% on the year, and guarantee schemes are especially important for economic recovery after the pandemic, he said. “Banks responded promptly and allowed moratoriums worth HRK 38 billion, but now the question is how to best utilise liquidity for recovery and overcoming the crisis.”

Adrovic said that besides maintaining companies’ liquidity, one must not forget the importance of investing in the Croatian economy.

“It’s necessary to make Croatia attractive for investment with a strategic government policy in order to kickstart recovery and come out of the crisis effectively. Maintaining a stable and competitive banking system not only improves the perception of Croatia in the eyes of investors, but also makes the whole system of attracting investment better.”

In Rovinj, central bank governors and bankers are discussing monetary policies and financial stability in times of Covid-19. The meeting brought together the central bank governors of Austria, Lithuania, Bosnia and Herzegovina, Slovenia, and Croatia.