Bank lending continued to fall in March 2016, contracting by 5.7% compared with March 2015, as a result of a partial write-off of loans indexed to the Swiss franc, further household deleveraging and weaker corporate demand on the domestic market, Raiffeisenbank Austria (RBA) says.
At the end of March 2016, the total amount of loans granted stood at HRK 266.7 billion, which was 3.4 billion or 1.3% less than in February 2016 and HRK 16.2 billion or 5.7% less than in March 2016.
The annual decline was also partly due to a drop in foreign currency-pegged loans.
On the other hand, kuna-denominated loans increased by 3% from February 2016 to HRK 82.3 billion. Compared with March 2015, kuna-denominated loans rose by HRK 6.9 billion or 9.1%.
Continued deleveraging was observed in dominant sectors. Corporate lending contracted by HRK 5.1 billion or 5.5% from March 2015 to HRK 88 billion, while household loans, which accounted for 44% of all lending, fell by 8% year on year to HRK 118.3 billion.
(EUR 1 = HRK 7.51)