According to HNB data, total bank loans at the end of April were higher than at the end of March, continuing the growth of total loans for the third consecutive month. At the end of April, total loans amounted to 287.9 billion kuna, which is 3.7 billion kuna, or 1.3 percent more than at the end of last year, write RBA analysts.
On an annual basis, negative annual rates of change continue, which we have been recording since November of last year. Thus, in April, total loans were 6.2 billion kuna, or 2.1% lower than at the end of April last year. Looking by sectors, there is a significant decrease in the amount of loans to the non-financial corporate sector and an increase in the banking sector’s exposure to the government sector, largely due to the transfer of loans from restructured shipyards to the government sector, while loans to households recorded a slight decline on an annual basis. The annual decline in corporate loans is also influenced by the transfer of problematic loans from a large bank to a specialized company abroad and due to some large companies borrowing directly abroad and repaying loans to domestic banks.
Loans to non-financial corporations at the end of April amounted to 111.2 billion kuna, which is 1.8 billion kuna or 1.7% more than at the end of March but also 10.8 billion kuna or 8.8% less than at the end of April 2012. Loans to non-financial corporations have recorded negative annual rates for nine consecutive months, with negative trends significantly intensifying over the last five months (partly due to the implementation of financial business regulations). The deleveraging of this sector is also confirmed by a decrease in its share of total loans to 38.6% compared to 41.5% which was the share of loans to corporations in the same period last year. On the other hand, the share of the central government has significantly increased, with its loans at the end of April amounting to 35.1 billion kuna, which is 2.6 billion kuna more than at the end of April 2012. Loans to households amounted to 129.4 billion kuna, which is 1.9 billion kuna less than at the end of April 2012.
