Croatia—cross border banking and finance guide
Produced in partnership with Schoenherr
Croatia—cross border banking and finance guide

The following Banking & Finance guidance note Produced in partnership with Schoenherr provides comprehensive and up to date legal information covering:

  • Croatia—cross border banking and finance guide
  • Loan market and developments
  • Lending
  • Security and guarantees
  • Enforcement
  • Intercreditor issues
  • Governing law and disputes

Loan market and developments

Please provide a brief overview of the current state of the loan markets in your jurisdiction and any significant recent market developments.

In line with information published by the national regulator of the banking sector—the Croatian National Bank (Hrvatska narodna banka; HNB)—under improved conditions of lending supply and demand, domestic bank lending recovered in 2016. Historically low interest rates and the growing demand provided a boost to the recovery in lending, particularly in the corporate segment, as well as the segment of kuna loans to both enterprises and households. Having contracted for two years, total bank placements to domestic sectors (excluding the government) increased by 1%, primarily due to a 3% rise in placements to enterprises. Almost all economic activities recorded enterprise lending growth (with the exception of construction). Household loans also rose in 2016 (by 0.5%), for the first time after a several year period of household deleveraging. The HNB continued to pursue a strongly expansionary and countercyclical monetary policy in 2016, thus supporting the recovery of the economic activity. The expansionary monetary policy stance was in early 2016 further strengthened by the introduction of structural repo operations that provide banks with long-term kuna liquidity.

Please provide a brief overview of forthcoming changes to the law or other matters that may affect the