HNB: Intesa Sanpaolo Received Approval for Acquisition of Veneto Bank Zagreb

The Council of the Croatian National Bank (HNB) reviewed economic and monetary developments, as well as the report on the management of international reserves and the financial results of HNB’s operations in the first half of the year, and made several decisions, including the approval for Intesa Sanpaolo to acquire Veneto Bank Zagreb, as announced by HNB.

HNB reminds that in the second quarter of 2017, real GDP growth accelerated on a quarterly and annual basis, and available data for July indicate an intensification of growth in the third quarter, while employment continued to grow and unemployment decreased during the second quarter. Consumer prices fell by 0.7 percent in July compared to June due to seasonal discounts, the same as in July last year. The annual rate of total inflation slightly accelerated, from 0.7 percent in June to 0.8 percent in July, primarily due to a higher annual increase in food prices, according to HNB.

>>>HNB: Intesa Sanpaolo Received Approval for Acquisition of Veneto Bank Zagreb

They state that HNB continued to implement an expansive monetary policy, with foreign exchange interventions alleviating appreciation pressures.

“Credit activity towards enterprises and households continued to grow, along with the continued increase in kuna lending to households. The net foreign debt of domestic sectors significantly decreased during the second quarter, thus reversing the growth of gross and net foreign debt achieved in the first three months of the current year. The general government deficit in the first quarter of 2017 was significantly reduced on an annual basis, and cash data from the Ministry of Finance indicate favorable trends in the second quarter as well,” it is stated in the announcement after the HNB Council meeting.

Restructuring of the Veneto Group

At today’s meeting, the bank Intesa Sanpaolo was approved to acquire shares that constitute 100 percent of the equity capital of Veneto Bank Zagreb. As part of the restructuring process of the Veneto Group in Italy, the banking group Intesa Sanpaolo has agreed to acquire shares of the Zagreb Veneto Bank, for which the approval of the competent regulator, in this case HNB, is required for the realization of this transaction.

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The HNB Council agreed with the decisions of the supervisory boards that Balász Pál Békeffy should receive another term as CEO of OTP Bank Croatia, that Alessio Cioni should be appointed as a member of the management board of Privredna Banka Zagreb, and that Ivan Ostojić should serve another term as a member of the management board of Wüstenrot Housing Savings Bank.

The HNB Council also made a decision to release into circulation banknotes of 50 kuna with the date of issue July 9, 2012, from September 25, 2017.