Today’s decision by the Governor of the Croatian National Bank (HNB) to reduce the minimum coverage rates of banks’ foreign currency liabilities with liquid foreign currency claims from 28.5% to 25% allows the banking system to freely dispose of approximately 840 million euros.
Members of the Council of the Croatian National Bank were informed at today’s meeting about the latest decisions within the Governor’s jurisdiction, which facilitate financing the state’s budgetary needs in the current challenging circumstances, as announced by the HNB. Thus, the minimum coverage rate of banks’ foreign currency liabilities with liquid foreign currency claims has been reduced from 28.5% to 25%, enabling the banking system as a whole to freely dispose of approximately 840 million euros. Additionally, the previous month’s swap arrangement with banks has been renewed for another month (1.9 billion kuna liquidity based on deposited foreign currencies).
The Council of the Croatian National Bank reviewed the latest monetary and economic developments at today’s meeting, as well as the basic assessments of the financial stability report, the effects of measures taken so far, and possible ways of monetary policy action depending on the further developments in the country and the world. The Council also adopted a Decision on the release into circulation of minted kuna and lipa coins marked with the year of minting “2009”. (H)
