Lending to non-financial institutions in April increased by 1.9 billion kuna (€252 million), according Croatia's central bank, "continuing strong growth, with the central bank adding that the demand for loans will probably continue to increase due to the significant price hikes for energy and raw materials," state agency Hina said on Tuesday.

The total placement by monetary institutions to domestic sectors, except for the central government, increased by 2.7 billion kuna to 254.5 billion kuna (€33.8 billion) in April, rising 1.1 percent from March. That increase refers entirely to loans which account for the main item of placements. For the third month in a row loans to non-financial enterprises increased strongly by 1.9 billion kuna.

“Central bank’s analysts believe that the demand for commercial loans has probably increased due to the price hike for energy and raw materials, which has increased the costs of supplies as well as an attempt for enterprises to take loans with more favourable conditions pre-empting the possible increase in the cost of borrowing,” Hina said.

Total loans – excluding the central government – at the end of April 2022 reached  247.9 billion kuna, which compared to April last year is an increase of 14.9 billion kuna or 6.4 percent. Total loans, based on transactions, increased by 2.7 billion kuna, or 1.1 percent month-on-month.

(€1 = 7.53 kuna)