The NRS has fallen again, therefore interest rates on loans are also decreasing!

The Croatian National Bank (HNB) has published the national reference rate (NRS) for the second time, and a comparison of this data with data from the first quarter of 2020 shows that the trend of falling NRS has continued uninterrupted since the beginning of 2013, according to the HNB’s statement.

Of the 24 NRS indices calculated by the HNB, in the second quarter of 2020, all these indices show the same or lower values than in the previous quarter. The indices related to USD decreased the most, by 0.06 to 0.12 percentage points, while those related to CHF decreased the least, remaining mostly unchanged. The two most prevalent indices in consumer loan agreements, 6M NRS1 EUR and 6M NRS1 HRK decreased by 0.03 percentage points, similar to the previous quarter.

The national reference rate (NRS) is, as the HNB reminds, an implicit interest rate that serves as an index for determining the variable part of the variable interest rate in financial contracts. The Croatian National Bank calculates the NRS from data on interest costs and the main sources of funds to which these costs relate, which the HNB regularly collects from banks and savings banks.

The quality of the NRS calculation process is ensured by controlling input data, established internal procedures, and regular audits of data control processes. The NRS and additional data used for its calculation are published on the Croatian National Bank’s website four times a year.

They remind that at the beginning of 2020, the HNB took over the task of calculating and regularly publishing the national reference rate. Previously, the NRS was calculated and published by the Croatian Banking Association (HUB), and this data for the period from the third quarter of 2012 to the fourth quarter of 2019 is available HERE.