Marić: The Situation is Complex, It is Difficult to Predict Further Inflation Trends

Deputy Prime Minister and Minister of Finance Zdravko Marić stated on Wednesday that it is not easy to predict how inflation will move for the rest of the year, and that new measures to mitigate its effects will be adopted 'depending on the development of the situation and possibilities'.

– The situation is complex and it is really difficult to predict any trends – said Marić after the Government session, commenting on the latest data from the DZS on inflation growth in May of 10.8 percent year-on-year, which is the highest inflation rate since the DZS has been keeping records.

Marić noted that the European Central Bank reacted a few days ago by announcing an increase in reference interest rates by 0.25 percentage points in July, and although it is almost certain that there will be an increase in September as well, it is not known by how much, which depends on the further development of the inflation situation.

He explained that such measures by central banks are one of the main tools in the fight to mitigate the effects of inflation. However, he emphasized that caution is needed, as it is very important to preserve the normal functioning of the economy in terms of supply chains, as well as maintaining the level of employment and GDP.

Given the further rise in energy and food prices, journalists asked Marić whether new measures to assist citizens and the economy would be introduced, to which the minister replied that certain decisions would be made depending on the development of the situation and possibilities.

There are many initiatives, the Government takes all of this into account, but it must always look at the bigger picture, added Marić.

When asked whether there is concern that there will be a significant increase in loan installments for citizens due to the situation with interest rates, about which banks have already informed some clients according to media reports, Marić said that he personally had not received such a notification, and that it is primarily a question for banks and the HNB.

From conversations with representatives of the ECB, as well as the domestic financial industry, Marić concludes that, regardless of the trends leading to an increase in interest rates, this dynamic 'is not that significant'

He clarified that all those who have fixed interest rates on existing loans are "de facto" protected. He also stated that the situation with rising interest rates should not be linked to past cases of loans in Swiss francs.

Speaking about his stay at the Bellevue hotel in Mali Lošinj in June 2019, which the Commission for Conflict of Interest has also opened a case about, Marić explained that for the price of the previous reservation, upon arrival for vacation, he received a higher, also more expensive category of accommodation.

On the bill that Marić possesses, the price that was at the time of reservation is written, and he will provide the Commission with all necessary information and data if needed.

Marić emphasized that he did not ask anything from the hotel nor influenced their decision in any way, and that the fact that there was an 'upgrade of the accommodation unit' does not put him in any dependency towards that hotel, which is otherwise owned by the company Jadranka d.d.

When journalists stated that it is an impermissible gift, Marić said that we will 'see what the Commission will say about that'.

Marić also reiterated that the loans from HBOR to the Jadranka group were approved before his term as chairman of the Supervisory Board of HBOR, adding that this company duly services its obligations in this regard.