Financial institutions loans growth slowed down in May to 6.7% YoY, while it was flat compared to April. Total financial institution’s loans amounted to HRK 272bn, while its biggest categories household loans and corporate loans growth decreased to 4.2% YoY and 3.8% YoY, respectively.

Croatian National Bank (HNB) published their monthly statistical report on loans placement of other monetary financial institutions. According to the monthly statistical report as of end May, total financial institution’s loans amounted to HRK 272bn, while their growth has amounted to 6.7% YoY which is a slow-down compared to previous months when higher growth was evidenced. Its biggest categories household loans and corporate loans evidenced growth of 4.2% YoY and 3.8% YoY, which is also a decrease compared to previous months and is in line with the slow-down in the economy caused by lock-down and Covid-19 pandemic.

Total loans issued to households amounted to HRK 134.31bn, representing an increase of 4.2% YoY (or HRK 5.38bn). Such an increase was mainly driven by almost solely by a rise in housing loans (+7.5% YoY or HRK 4.1bn) and consumer loans (+4.6% YoY or HRK 2.33bn). It is worth noting that these two items account for 83.4% of the total loans to households. The mentioned increase was partially offset by a decrease in almost all other loan segments. It is worth noting that car loans observed a sharp drop of 20% or HRK 119.80m. This does not come as a surprise, given the low car sale trend which has been observed throughout this year.

Loans to Households (Jan 2016 – May 2020) (HRK bn)

However, if we were to observe the YTD loan development (to households), one can observe a 0.9% increase by HRK 1.19bn. Such an increase came almost solely on the back of housing loans which increased by HRK 1.48bn or 2.6% YTD. It is worth mentioning that majority of the increase came in the months prior to the Covid-19 outbreak, while in April and May we observe a decrease of 0.6% MoM and an increase of 0.7% MoM, respectively. It is worth noting that it is reasonable to expect a negative trend going forward throughout the year, given the many uncertainties and risks in the labor market which was caused by the ongoing Covid-19 pandemic.

Of other loan segments, consumer loans observed a slight increase of 0.2% to HRK 53.05bn, while mortgage loans increased by 7.4% to HRK 2.02bn. On the flip side, the highest decrease was observed in credit card loans (-5.7%) to HRK 3.63bn and other loans (-1.5%) to HRK 9.55bn.

Structure of Loans to Households (May 2020)

The renewed authorization issued by ANCOM will apply for a maximum period of 12 months starting 1 July 2020.

Digi Communications published a statement announcing that the National Authority for Management and Regulation of Communications in Romania (ANCOM) has authorized  the Company’s subsidiary in Romania RCS & RDS, to continue to apply a surcharge for certain mobile telephony roaming services supplied to its customers traveling in the European Economic Area (EEA), therefore including the EU.

By decision received on Monday (29 June), in order to allow RCS&RDS to continue to cover the costs incurred for the supply of roaming services and to continue to apply the national tariffs in Romania, ANCOM has authorized RCS&RDS’ request to apply a surcharge, on top of the national tariffs, for certain roaming services supplied to its own customers traveling in the EEA, but without going above the maximal following values:

• 0.0154 Euro/minute (excluding VAT), for the calls made by its clients,
• 0.0079 Euro/minute (excluding VAT), for the calls received by its clients (this value might vary in accordance with the changes brought by the European legislation),
• 1.41 Euro/GB (0.00141 Euro/MB), excluding VAT.

 RCS&RDS will apply the roaming surcharges starting from the first unit of consumption supplied to its own customers traveling in the EEA. The renewed authorization issued by ANCOM will apply for a maximum period of 12 months starting 1 July 2020.

As a result of this increase, MedLife holds a 68% stake in the company.

MedLife published an announcement on the Bucharest Stock Exchange stating that they have taken overan additional 7% stake in Genesys Arad group of companies, one of the largest private medical service providers in western Romania. The additional stake was acquired for an undisclosed amount.

As a result of this increase, MedLife holds a 68% stake in the company. Genesys Arad has been part of MedLife group since 2011, when the representatives announced the acquisition of the majority package, and the value of the transaction amounted to approximately EUR 3m.