Total liquid assets (M4) increased in April based on transactions, reflecting the rise in net domestic and net foreign assets of the monetary system, with M4 growth gaining momentum.

Total placements of monetary institutions to domestic sectors (except the central government) decreased in April on the back of the drop in placements to other financial institutions and corporates, while placements to households continued to grow slowly. The increase in total placements accelerated on an annual level mostly due to the faster growth in placements to households.

Total liquid assets (M4^[1]) stood at HRK 371.3bn at the end of April (Table 1), up HRK 3.3bn or 0.9% (based on transactions) from March 2021. The monthly increase in M4 reflects the rise in net domestic assets (NDA) and net foreign assets (NFA) of the monetary system. As regards the NDA structure, net claims on the central government grew, while a decrease was seen in central government’s kuna deposits with the CNB. As regards the components of total liquid assets, money (M1^[2]) went up by HRK 1.5bn (0.9%), mostly on account of the rise in funds in the transaction accounts of households, whereas quasi-money rose by HRK 1.7bn (0.9%), with a particularly noteworthy growth in kuna deposits of other financial institutions (Table 3). After slowing down in March, the annual increase in M4 picked up in April to 8.1% (from 7.4%). The annual growth in money slackened from 18.4% to 18.1%, whereas the growth in quasi-money went up from −0.1% in March to 1.2% in April (Figure 1).

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 central government) decreased by HRK 0.8bn (0.3%) from March to April (based on transactions), ending the month at HRK 240.0bn. On an annual level, the growth in total placements accelerated from 2.3% in March to 2.6% in April (Figure 2). In the same period, total loans, the most important item of placements, recorded a decrease on a monthly level (HRK 0.9bn or 0.4%), driven by the fall in both loans to other financial institutions (HRK 0.7bn or 5.9%) and corporate loans (HRK 0.4bn or 0.5%, Table 2). By contrast, household loans continued to increase, growing by HRK 0.2bn (0.1%) on a monthly level. Housing and general-purpose cash loans grew by approximately the same amount (HRK 0.2bn or 0.3%); as a result, the annual increase in housing loans picked up from 8.9% in March to 9.3% in April, whereas the fall in general-purpose cash loans moderated from −2.5% to −1.2%. The annual growth rate of corporate loans remained unchanged from the month before.

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 Loans (except the central government) and main components
in billion HRK and %

¹ In addition to loans to households and corporates, they also include loans 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 loans, including the sale of loans in the amount of their value adjustment.
Source: CNB.

Table 3 Deposits (except the central government) and main components
in billion HRK and %

¹ Includes only kuna sources of funds of credit institutions.
² The transactions show changes that exclude the effects of exchange rate changes, securities price adjustments, reclassification and write-off of loans, including the sale of loans in the amount of their value adjustment.
Source: CNB.

For detailed information on monetary statistics as at April 2021, see:
Central bank (CNB)
Other monetary financial institutions

¹ Total liquid assets (M4) as defined by the CNB represent a broader definition of currency in circulation. ↑

² Money (M1) as defined by the CNB represents a narrow definition of currency in circulation. ↑