Total placements of monetary institutions to domestic sectors (excluding the central government) in July recorded an increase of 1.5 billion kuna or 0.6 percent (based on transactions) compared to June, amounting to 242.2 billion kuna at the end of the month, according to the HNB’s Commentary on Monetary Movements for July. The annual growth rate of total placements accelerated from 3.8 percent in June to 4.1 percent in July, with the monthly increase in placements almost entirely reflecting the growth of loans, which amounted to 236.5 billion kuna at the end of July.
Sector-wise, loans to households increased the most (1.3 billion kuna or 1.0 percent) due to the government subsidy program that continued to stimulate strong growth in housing loans (1.1 billion kuna or 1.7 percent), while a relatively mild increase in cash non-purpose loans continued (0.2 billion kuna or 0.4 percent).
On an annual basis, housing loans continued to accelerate growth (from 10.1 percent to 10.6 percent), as did cash non-purpose loans (from 0.2 percent to 0.6 percent), resulting in an acceleration of total loans to households from 4.0 percent to 4.3 percent. In July, loans to other financial institutions also slightly increased (0.3 billion kuna or 3.3 percent), while, on the other hand, loans to enterprises decreased by 0.2 billion kuna or 0.3 percent. Despite the monthly decline, the annual growth rate of loans to enterprises accelerated from 1.5 percent to 1.6 percent due to the base period effect, or a slightly larger decline in enterprise lending in the same month last year.
