Total household loans in Croatia reached HRK 137.5 billion at the end of April 2021, increasing by HRK 3.6 billion from April 2020, Raiffeisen Bank (RBA) said in its recent analysis of data provided by the Croatian National Bank (HNB).
The annual nominal household loan growth rate was 2.7 per cent, picking up from 1.6 per cent in March 2021, reports HINA Agency.
The share of kuna-denominated loans in total loans was 55 per cent, and the nominal amount of loans was affected by the euro-kuna exchange rate, which was 0.4 per cent lower on an annual level and 0.1 per cent lower on a monthly level.
Compared with December 2020, household credit claims in April 2021 increased by 1 per cent or 1.35 billion kuna (€180 million) as a result of a rise in the nominal value of housing loans and the impact of housing subsidy schemes on them.
Housing loans accounted for 46.4 per cent of total household loans, reaching 63.8 billion (€8.5 billion), up by 1.61 billion (€214 million) from the end of 2020. The annual growth rate picked up from 8.3 per cent in March to 9 per cent in April.
On the other hand, general-purpose cash loans, despite a slight monthly rise of 0.2 per cent to 52.5 billion (€7 billion), were 1.4 per cent lower than in April 2020, while increasing by 0.5 per cent compared with the end of 2020.
RBA analysts expect that the rise in household loans will continue this year on the back of subsidised housing loans and the need for funding for the reconstruction of housing damaged in last year’s earthquakes.
With the easing of Covid-19 restrictions and the acceleration of economic activity, there will be an increase in demand for cash loans, but this year it will be more modest than the two-digit growth rates seen between mid-2018 and the outbreak of the coronavirus pandemic, RBA said.
(€1 = 7.49 kuna)