Total liquid assets (M4) grew by HRK 6.5bn (2.0%) in July 2019, standing at HRK 329.8bn at the end of the month (Table 1). The monthly increase in M4 was mostly spurred by the seasonal growth in net foreign assets (NFA) of credit institutions. An opposite effect was produced by the fall in net domestic assets (NDA) of the monetary system which was mostly due to the fall in corporate placements. On an annual level, the growth of total liquid assets (M4) accelerated in July 2019 to 4.9%, based on transactions (Figure 1). As regards the components of total liquid assets, the annual growth in money (M1) accelerated to 16.1%, while the annual fall in quasi-money was slightly more pronounced and stood at 1.3% at the end of July (based on transactions).

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

Total placements of monetary institutions to domestic sectors (except the government) fell by HRK 0.6bn in July (based on transactions) and their annual growth continued to slow down and stood at 3.4% in July (Figure 2). The fall in total placements to domestic sectors in July was the result of a fall in placements to non-financial corporations which stood at –2.3% on an annual level (i.e. –0.4% if the effect of the activation of government guarantees to shipyards is excluded). The implementation of the settlement in the Agrokor Group which involved a transfer of a part of credit institutions’ claims on domestic companies within the Group to foreign companies within the Group, contributed to more unfavourable developments in placements to corporates and pushed the annual rates of change in the negative territory. As regards households, the annual growth of placements to that sector accelerated to 7.1% in July (Table 2), driven by a further acceleration in the annual growth in housing loans. In the same period, general-purpose cash loans accelerated mildly on an annual level. As for the nominal stock of placements, their annual growth stood at 1.8% in July and was significantly slower than the transaction-based growth, primarily as a result of the sale of non-performing placements.

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

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

¹In addition to placements to households and corporates, they also include placements to the local government and other financial institutions.
²The 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 July 2019, see:

Central bank (CNB)
Other monetary financial institutions