Rohatinski Gives More Money to Banks

At the opening of the 18th ZSE conference, on the very day when the stock exchange experienced the largest negative opening in its history, the greatest attention was drawn to the governor of the HNB, who, alongside criticisms of the government and banks, offered several conciliatory solutions.

Criticizing other factors of the financial system, primarily the banks and the funds they manage, the governor of the HNB stated that they are doing everything to keep the financial system stable. -At today’s HNB Council, I expect a decision to be made to abolish the banks’ reserve limits, which will result in an influx of new 450 million euros into the system. Furthermore, we will introduce a new type of repo auctions for which the collateral will be government bonds and top-rated corporate papers – explained Rohatinski.

In a lengthy speech, he also criticized the banks, which, in his opinion, behave irresponsibly towards the funds they have established, investing 20 to 30 percent in high-risk securities and insufficiently caring for the liquidity of the funds, even though they had the means for it. -We do not want to interfere in the capital market because we do not have the instruments for such a thing – said Rohatinski, adding that the current situation, in which events on foreign markets are mirrored, is not based on any fundamental values at all.

–I do not know what connection the stock exchanges in New York and Zagreb have, but in recent days the ZSE has been following signals from abroad – believes the governor of the HNB. In his criticism of the banks, he emphasized that despite their constant complaints about the limitation of loan growth, in the first nine months they grew at a rate of six percent, despite the limitation being nine percent. He also added that he is pleased that external debt is decreasing, but part of that is being substituted with loans to companies abroad from the parent companies of domestic banks.

-Banks can borrow from the HNB, but not for what they want. Yesterday we injected five billion kuna into the system. We would have done that two weeks ago if the banks had asked us – said Rohatinski. -Our goal will continue to be to curb inflation and maintain a stable exchange rate policy – said Rohatinski. The conference continues with panels on the future of the capital market, and it will certainly be interesting to hear statements from the market leaders, which is experiencing the greatest crisis since its inception. (Amir Kulenović)