Household lending totalled 136.5 billion kuna at the end of January 2021, continuing to increase both on the month and on the year, by 0.3% and 2.2% respectively, according to data from the Croatian central bank.

In a comment, Raiffeisen Bank (RBA) analysts say the 136.5 billion kuna is the highest amount of household lending to date.

In January 2021, household lending increased month on month for the nine month in a row.

Year on year, growth has been consecutive since mid-2017. In December 2020, annual growth was 2.3%, slowing to 2.2% (-918 million kuna) in January 2021.

Housing loans accounted for the bulk of household loans, totalling 62.9 billion kuna in January 2021, up 1.1% on the month (+709.2 million kuna) and 9.2% on the year (+5.3billion kuna) , continuing a trend which began in November 2017.

Owing to increased lending, which is also a result of subsidised housing, the share of housing loans in household lending increased from 43.1% to 46.1% in the past year, and the share of housing loans in the domestic currency in all housing loans increased from 30.6% to 31.2%, RBA analysts noted.

Non-purpose cash loans accounted for 38.1% of all household loans, totalling 52 billion kuna in January 2021, down 2.2% on the year (-1.2 billion kuna), continuing a three-month slide, and down 0.4% on the month (-210.3 million kuna).

RBA analysts expect household lending to continue to rise this year on the back of the subsidised housing programme extended until 2023 and also due to financing dwellings damaged in last year’s earthquakes.

(€1 = 7.5 kuna)