Total liquid assets (M4) grew by HRK 1.2bn (0.4%) in December 2017, standing at HRK 307.2bn at the end of the month (Table 1). Excluding the effect of the kuna appreciation, M4 grew by HRK 2.1 bn (0.7%) in December. The monthly increase in the broadest monetary aggregate was driven by the strong growth of net domestic assets (NDA), while net foreign assets (NFA) contributed towards its decrease. The NDA increase was primarily the result of the strong growth of monetary institutions' net claims on the central government due to a sharper fall in government deposits than in government debt in December. Specifically, the foreign exchange deposited with the CNB after the eurobond issue in November were used to reduce the liabilities of road companies on domestic and foreign credit institutions' syndicated loans, which resulted both in a decrease in central government debt owed to domestic credit institutions and in net foreign assets of the monetary system (NFA). Total liquid assets increased at an annual rate of 3.2% in December 2017, a rate similar to that in the previous month (exchange rate changes excluded) (Figure 1). The annual growth rate of the narrow monetary aggregate, money (M1), having edged down in December from the previous month, remained high at 19.1%, while the annual fall of quasi-money deepened to –4.4%.

Figure 1 Monetary aggregates annual rates of change	Figure 2 Placements annual rates of change based on transactions
Source: CNB.

Total placements of monetary institutions to domestic sectors (excluding the government) held steady in December (transaction-based), amounting to HRK 219.5bn at the end of the month, with their annual growth rate accelerating slightly to 2.9% (transaction-based, Figure 2). The annual growth of placements to households accelerated to 4.0%, while placements to non-financial corporations grew at a rate of 2.6% (Table 2). The nominal stock of placements was 0.9% lower at-end December 2017 than at end-December 2016, which was largely due to the sale of non-performing placements.

Table 1 Summary consolidated balance sheet of monetary institutions
in billion HRK and %

1 The sum total of asset items 2.2 to 2.8 of Bulletin Table B1: Consolidated balance sheet of monetary financial institutions.
2 The sum total of liability items 2 to 5 of Bulletin Table B1: Consolidated balance sheet of monetary financial institutions.

Source: CNB

Table 2 Placements (except the central government) and main components
in billion HRK and %

1 In addition to placements to households and corporates, they also include placements to the local government and other financial institutions.
2 The transactions show changes that exclude the effects of exchange rate changes, securities price adjustments, reclassification and write-off of placements, including the sale of placements in the amount of their value adjustment.

Source: CNB

For detailed information on monetary statistics as at December 2017, see:

Central bank (CNB)
Other monetary financial institutions