Luković: Zaba will withstand the onslaught of the crisis

After the financial crisis swept through the medium-term financing market (neither banks nor companies could obtain loans for a term longer than two years), the situation in the market has stabilized, stated Franjo Luković, CEO of Zaba, at the traditional meeting with journalists.

To a certain extent, there will be money available, primarily from domestic sources (savings are rapidly increasing this year), and part will also be covered by additional sources from the Unicredit group, which, moreover, will not withdraw dividends but will keep those funds in Croatia, says Luković. Zagrebačka banka has entered the crisis in the best possible position, with high capital adequacy, large reserves at the Croatian National Bank, solid clients, and if needed, support from the parent bank. This does not mean that the crisis will not affect us, says Luković, but with a market share in loans of 24.3 percent and savings of as much as 25.9 percent, it is easier to withstand its onslaught. Although the bank has performed exceptionally well this year, the last quarter will certainly be weaker.

Primarily due to the decline in the prices of Croatian bonds, but also industrial products and due to the increasingly expensive cost of maintaining liquidity (daily, overnight trading) in the money market. Although the hardest part of the crisis is behind us, that does not mean the crisis has passed. How much it will affect us next year and how deep the recession will be is difficult to assess, claims Luković. However, it is positive that the government is trying to balance the budget so that more money for financing remains with companies. It would be good, he advises, for the government to create certain reserves that it could intervene with if needed. Zagrebačka banka, claims Luković, will remain a strong support to all its clients even in the crisis. This is evidenced by the plan to increase the number of employees and the number of branches in the country. (Gordana Gelenčer)