Croatian Eurozone Accession: Should You Take Out a Loan Now or Later?
July the 15th, 2022 - Croatian Eurozone accession is now very rapidly approaching, but with all of these changes and upheavals on the way, should you take out a loan now in Croatian kuna, or wait until after January the 1st, 2023?
As Poslovni Dnevnik writes, the Croatian National Bank (HNB/CNB) said that "Croatian Eurozone accession has no implications for the riskiness of kuna loans". Regarding interest rates - if the interest rate is fixed, it will remain fixed, and if the interest rate is variable, it will remain so, they claim.
"On the day of the introduction of the euro, the principal amount of the kuna loan will be converted into euros at a fixed conversion rate to be determined by the Council of the European Union without any cost to the bank's client," they explained from the CNB for N1.
"Croatian Eurozone accession has no implications for the riskiness of loans denominated in euros. In the case of euro loans, which also applies to kuna loans with a currency clause in euro, there will be no need to recalculate the principal amount on the day of the introduction of the euro because it's already expressed in euros. When it comes to the interest rate, the approach is going to be the same as it is with kuna loans: if the interest rate is fixed, it will remain fixed, and if it's variable, then it remains variable," they added.
What will happen to interest rates?
Financial analyst Andrej Grubisic said that the conversion rate itself is no longer the primary category, but interest rates are...
"The exchange rate at which the kuna will be converted into euros is already known, it will be at a rate of 7.53450, so the exchange rate difference is de facto negligible. I don't see any room for serious arbitrage or calculations in this regard. The bigger question is what the price of an apartment will be six months from today, not what the exchange rate will be. "Whether an apartment (per square metre) will cost several tens of euros more or less is a far more important question at this moment in time," said Grubisic, adding:
"Another thing is whether six months from today the interest rates will be slightly higher than they are today.''
Grubisic also noted that the president of the Croatian Association of Banks, Zdenko Adrovic, recently stated that he wouldn't be surprised if, in the foreseeable future, interest rates are one to two percentage points higher than they are today. Let us remind you that Adrovic told N1 Studio live that the first increase in interest rates by 0.25 percent will come in July, and the next will come very soon after that, in September, also by 0.25 percent.
"Given the fact that inflation is high, we should expect that there will be an increase in interest rates", Grubisic said, before adding: "I don't think it's unrealistic to think that in 12 to 18 months from today, we'll have one or 1.5 percent higher interest rates than we have today.” He also pointed out that "even today there are pressures for interest rates to go up".
"Therefore, people shouldn't be surprised if the interest rate on a housing or other loan in six months is 0.3 or 0.5 percent higher than it is today, because we were in a period of extremely low interest rates, unusually low ones, which is unsustainable if you have inflation that is higher than the interest rate," said Grubisic.
He was asked if this means that if we can expect higher interest rates in the near future, it is better for people to take out loans now, while the kuna is in force, than to wait for Croatian Eurozone accession on the 1st of January next year? His answer was a clear one: "Exactly."
“It's wise to go for a fixed rate loan and avoid any form of calculation or uncertainty that comes from variable interest rates. So, if we're talking about housing loans, given that these are obligations which are fixed for a long period of time, nobody can tell you what will happen in five, let alone in ten or fifteen years. If today it seems to you that it's slightly higher than the existing variable interest rate, it may be today, but in the future it may change. That way, you get some certainty and you know what you can count on, there's no uncertainty with fixed interest rates," Grubisic concluded for N1.
For more, make sure to check out our dedicated politics section.
Konzum to Begin Showing Prices in Both Kuna and Euros This Week
July the 15th, 2022 - The huge Croatian shopping chain Konzum is set to begin showing the prices of the items on their shelves in both kuna and euros as Croatian Eurozone accession rapidly approaches.
As Poslovni Dnevnik writes, starting this week, Konzum will proactively start with the dual display of prices for products and services in both kuna and euros, and in this way, even before the official obligation on the dual display of prices comes into force on September the 5th, 2022, all customers shopping in Konzum's stores will have an insight into the prices of products and in the new currency that the Republic of Croatia will officially introduce on the first day of 2023.
All items on Konzum's ample shelves will have their prices expressed in both Croatian kuna and euros and a fixed conversion rate amount of 7.53450 kuna to the euro, and the change of all labels in Konzum's more than 600 stores will be done by the end of July.
The double display of prices even before the legal obligation is a continuation of the company's wider policy of open and transparent relations with its customers. One of the similar examples of this was Konzum's price reduction of over a thousand items back in February of this year in accordance with the decision of the Croatian Government to reduce VAT, and it was the first retail chain in all of Croatia to do so even before the decision came into force in April.
"A transparent relationship with our customers is imperative for our business, on the basis of which we earn and strengthen their trust day by day. We always strive to be open in everything we do, including in this challenging period of the introduction of the euro. We started with the preparations on time and our employees are ready to continue with all the stages of implementation of these historic changes in order to help our customers adapt to the transition to the country's new currency as easily as possible,'' said Zoran Mitreski, President of Konzum's Management Board.
The entire process of introducing the euro in Croatia is being divided into three phases, and Konzum has been monitoring each of them with its own activities. The first one refers to the display of dual prices and a fixed exchange rate, the implementation of which Konzum has already begun. Double prices will be displayed until December the 31st, 2023 on all products on sale in all Konzum stores, including on the online store. Prices in both currencies will be displayed throughout the entire process of selecting and purchasing items – on the store shelves, in online shopping carts, during the checkout process and during an order confirmation when purchasing goods online, as well as on all issued receipts.
The second phase will begin on January the 1st, 2023 with the official introduction of the euro in Croatia, and it is important to note that it will remain possible to pay in kuna until January the 14th of the same year, with refunds being given only in euros.
The third phase refers to the period from January the 15th, 2023, when the euro will be the only currency with which customers will be able to pay in Konzum's stores.
For more, make sure to check out our dedicated business section.
Grand Prix Zagreb: Over 500 to Compete in Judo Spectacle at Arena Zagreb
July 15, 2022 - This weekend, 516 judokas from 69 countries will compete for 2024 Olympic points at the Grand Prix Zagreb!
From Friday to Sunday, Arena Zagreb will be the scene of the ninth edition of the Grand Prix Zagreb judo tournament, where 516 judokas from 69 countries will compete for Olympic points for the 2024 Paris Games, reports HJS.
"Last weekend, at the Grand Slam in Budapest, many judoka men and women asked me about Zagreb. Everyone said that they like to come, that they are looking forward to it, so we are also glad to have the best in the world in our country," said world champion Barbara Matić (up to 70 kg) at the press conference.
She is one of 17 Croatian names in the draw, including all three medalists from the Mediterranean Games in Algeria, Ana Viktorija Puljiz (up to 52 kg), Iva Oberan (up to 63 kg), and Petrunjela Pavić (up to 78 kg).
It is Puljiz who will "break the ice" as far as Croatian competitors are concerned in Arena Zagreb, and on Friday, Tihea Topolovec (up to 57 kg) and Leon Đapić (up to 66 kg) will also compete.
"Performing at home, in front of our fans, is always a special thing and an additional motive. After the medal at last year's Grand Prix Zagreb and the recent Mediterranean Games, I come without too much pressure and want to show my best judo," announced Puljiz, who starts against the American Jarrell. Topolovec awaits her first-round opponent, and Đapić goes against the Briton Fryer.
Six Croatian representatives will compete on Saturday. Oberan will fight against German Winzig, Lara Cvjetko (up to 70 kg) will face the experienced Cuban Perez, world vice-champion from 2017, and Matić will meet an old acquaintance, Hungarian Gerscak. In the same category, Anđela Violić awaits Colombia's Rodriguez, 16th in the world ranking. In the men's competition, Robert Klačar (up to 73 kg) will take on Morka from Poland, while Marin Franušić (up to 81 kg) will face Moldovan Zaborosciuc.
"After the medal in Budapest and Zagreb, it would be nice to continue in the same rhythm, but we will go fight by fight. We have a strong national team, we all have a chance for a medal, and it is especially nice to win it in front of our fans, which I hope will fill the stands of the Arena," said Matić.
On Sunday, from 10 am, eight Croatian representatives will compete. Pavić goes against Venezuelan Leon, Tina Radić (over 78 kg) awaits Alqahtani from Saudi Arabia, and Ivana Maranić (over 78 kg) goes against Turkish judoka Akbulut. In the same category, Helena Vuković will fight against Moroccan Bensale.
In the men's competition, Josip Bulić (up to 90 kg) will fight against Serbian representative Brašnjović, Zlatko Kumrić (up to 100 kilograms) goes against German Mai, Marko Kumrić (up to 100 kg) against Georgian Sulamanidze, and Marcelo Škalec (over 100 kilograms) awaits Montenegrin Dubret.
Everyone who buys a ticket for the Grand Prix Zagreb 2022, which they can do at Entrio.hr, helps children without adequate parental care in cooperation with the Vaša pošta foundation. Furthermore, on Saturday (4 pm), members of the Fuji judo club for persons with disabilities will perform a judo demonstration at the official opening of the competition.
"This is a big deal for the Fuji demo team but also all judokas because we show that judo is not only a sport but also a way of life. The way that includes all segments of society," said Marina Drašković, president of Fuji.
To read more about sports in Croatia, follow TCN’s dedicated page.
Marko Livaja Extends Hajduk Contract Until 2027!
July 15, 2022 - Marko Livaja, Hajduk's #10 and the top scorer of SuperSport HNL last season, has extended his contract with Hajduk until the summer of 2027.
The news, which delighted Hajduk's numerous fans, was announced by Hajduk President Lukša Jakobušić in front of the packed stands on Vukovarska Street in Split, where the Torcida Cup is being played, a legendary tournament that has been played in the city for several decades, announced Hajduk.
"Thank you for coming, for following us. You're probably wondering who's coming. This transfer window will be a little different. It will be more of a challenge to retain these exceptional people than to bring someone in. Just an hour ago, we signed a five-year contract with Marko Livaja," said president Lukša Jakobušić.
"Thank you for the great response. I am proud to be part of this team and happy to extend my contract. I hope the next season will be even more successful than the last," said Marko Livaja from the pitch.
Robert Matic
Marko received a well-deserved standing ovation and applause from his teammates, the coaching staff led by coach Valdas Dambrauskas and the audience; in a symbolic place, he showed how much Hajduk means to him, i.e., how much emotion he has towards the club and the fans who show him love and respect every day.
"Numerous well-deserved eulogies have been written about the achievements, statistics, records, moves, and games on the pitch of Hajduk's #10, and his contribution will indeed remain registered in the history of the Club alongside the greatest greats. On and off the field.
Love and loyalty to your Club and fans cannot be compared to anything. Marko once again showed his greatness and will lead his team on the way to new successes. We wish him many more happy moments. Congratulations!" concluded Hajduk.
The official presentation of Marko Livaja's contract extension will take place on Friday, July 15 at Poljud starting at 2 pm.
To read more about sports in Croatia, follow TCN’s dedicated page.
NFCACF 29th Annual Assembly of Delegates Held in Baltimore, Maryland
July 14, 2022 - The National Federation of Croatian Americans (NFCACF) convened the 29th Annual Assembly of Delegates in Baltimore and with thirty delegates from a dozen Croatian American groups participating in the hybrid event held on July 1st and 2nd. The weekend affair was held at the Baltimore Waterfront Marriott Hotel, right across the water from the famous Baltimore landmark, Fort McHenry.
It was a productive and fun meeting integrated within the Croatian Fraternal Union (CFU) Junior TamFest. There were thirteen Junior Tambura Ensembles that performed throughout the weekend and with Jason Ottmann as the festival's guest conductor. Also, it was wonderful to have a Tamburitzan Catholic Mass on Saturday afternoon with co-celebrants Father William Hritsko and Father Maurus Dolcic. There were social events with tambura music and dance on both weekend nights. The Saturday music was provided by the Orkestar Zadnja Stanica of Steelton, Pennsylvania. Ed Pazo, CFU National President was the Master of Ceremonies, all weekend for all the Junior Tamfest activities and it was a music-filled weekend.
President Steve Rukavina opened the private Friday delegate's meeting with his annual NFCACF State of the Union address. The long-term President shared that the organization was coming off a busy last twelve months. He was pleased that we have eight Board Members and committee members under the age of forty and emerging as super activists within our organization. He shared updates about the Visa Waiver Program and the positive progress with the bilateral Avoidance of Double Taxation Treaty. The President discussed ways that the NFCACF and the Croatian American community has shown support for Ukraine's efforts against the Russian aggressor. The NFCACF has been collaborating with the Central Eastern European Coalition (CEEC) too now with a heavy emphasis on the war in Ukraine. President Rukavina gave a long list of developments in Bosnia and Herzegovina, including many nuanced details about the challenges facing the Croat community there, especially with electoral reform issues, dealing with the Dayton Peace Accord being circumvented and with the October 2nd election pending.
Public Affairs Consultant Joe Foley gave his 23rd Washington Report, highlighting all key NFCACF activities in the nation's capital, including quite a few details about what to expect with the U.S. Senate approval process with the bilateral Avoidance of the Double Taxation treaty. He also shared a few updates about projects connected to the Congressional Croatian Caucus and the Three Seas Initiative. The NFCACF was appreciative that Croatian Ambassador Pjer Simunovic attended the Saturday public session and spoke to all delegates and guests about recent activities in Washington, DC. The Ambassador spoke highly of recent US-Croatia developments and including about the recent visit by Croatia's Interior Minister Davor Bozinovic to the nation's capital and also, about a fifteen-member Croatian government delegation that visited in March too for a very important US-Croatia Strategic Alliance set of high-level meetings.
There was a major Croatian American Sports Hall of Fame (CAS-HOF) presentation on Saturday to highlight the plans for this exciting initiative in 2022. CAS-HOF Co-Chair Vedran Nazor shared key details and announced the ten inductees and Sunday, October 16th was chosen for the induction ceremony to be held in Cleveland. CAS-HOF Selection Committee members Steve Rukavina, Tom Steich, Dino Mattisich and Derek Hohn were on hand too. President Rukavina shared details about the group's Special Olympics Committee and the plans to hold a major fundraiser in the Los Angeles area in October, led by Chair Joe Brajevich and also, and committee members Kata Rudela and Dana Kandic, attended the Baltimore meeting.
There were four national Presidents participating in the NFCACF's private Friday delegate's meeting with Ed Pazo, Croatian Fraternal Union, John Kraljic, Croatian Academy of America and Dr. Steve Pavletic, of the Association of Croatian American Professionals all joining with Steve Rukavina, the NFCACF President for substantive discussions about ten major Croatian priority projects.
On Friday, July 1st, the elections were held and the newly elected officers of the NFCACF Executive Committee are: included: Steve Rukavina (President) Andrea Novak-Neumann (Executive Vice President), Adam Radman (Treasurer), Anna Maria Sicenica (Secretary), Mark Plavetic (Assistant Secretary) and with three Vice-Presidents, Mario Spalatin, John Kraljic, Biljana Lovrinovic and two officers at-large, Carolyn Bruno, and Bernadette Luketich-Sikaras.
The remaining board members elected: Eric Gregrich, Bob Jerin, Marko Kirn, Nena Komarica, Tom Mustac, Tatjana Mustac, Vesna Jezic, Jim Kresnik, Zvonko Labas, Vedran Nazor, Sanja Newman, Dr. Steve Pavletic, Jelena Rudela, Tom Steich, Judi Zivic and Ron Zivic.
For more, check out our lifestyle section.
Božinović: We Are Prepared For Wildfire Season
ZAGREB, 14 July 2022 - Interior Minister Davor Božinović said on Thursday that we were ready for the wildfire season and the services did a good job at the site of Wdnesday's wildfire near Šibenik.
"We were prepared for the wildfire season and services did a good job. We have to be aware that climate change is the main change that is occurring and will continue in the years to come."
Božinović underscored that the Mediterranean, along with California, is one of the world's two biggest hotspots when it comes to global warming.
Speaking about the wildfires that hit the Šibenik area on Wednesday, Božinović said that forces in the Šibenik and Vodice hinterland gradually increased, depending on how the situation developed, primarily due to unexpected changes in wind directions.
The minister specified that a total of 350 firefighters were engaged on Wednesday, mostly from Šibenik-Knin County, and half of them from six other counties, as well as 50 members of the Croatian Army and 75 police officers.
Asked how many fire-fighting aircraft Croatia has at its disposal, Božinović replied that there are currently four Canadair planes and three air-tractors available.
"By 23 July, we will have one more air-tractor, and by 30 July, one more air-tractor and one Canadair aircraft." This means that as of 1 August, Croatia should have five Canadairs and five air-tractors at its disposal. Another Canadair, which is being overhauled, should be ready by the end of the year,'' he specified.
Božinović on EPPO action: I encourage the institutions to protect the interests of Croatia and the EU
Asked to comment on the latest action by the European Public Prosecutor's Office (EPPO) and the PNUSKOK - police anti-corruption office regarding alleged bribes and the rigging of the tender process for the extension and reconstruction of the wastewater treatment plant in Varaždin, Božinović said that all institutions have a free hand in enforcing the law.
For more, check out our politics section.
Government Adopts Aid Packages For Beekeepers And Livestock Farmers
ZAGREB, 14 July 2022 - The government on Thursday adopted a HRK 1.2 million (€160,000) aid programme for beekeepers to offset the damage caused by mass deaths of bee colonies this spring and a HRK 80 million (€10.6 m) emergency package to help dairy, pig and poultry farmers cope with increased feed and energy prices.
Mass deaths of bees occurred in Međimurje County, Bjelovar-Bilogora County and Virovitica-Podravina County this spring, causing a loss of nearly 2,000 bee colonies and jeopardising the pollination of agricultural crops, Agriculture Minister Marija Vučković said.
The aim of the programme is to compensate the beekeepers for the losses and ensure continued beekeeping. The beekeepers will be entitled to HRK 860 (€115) per colony.
The programme of emergency measures for dairy, pig and poultry farmers aims to ensure the continuation of primary production in these sectors and contribute to the security of supply of milk, pork, poultry and eggs. The aid will be allocated to micro, small and medium enterprises.
For more, check out our politics section.
Croatian FM: Entry Of Finland And Sweden Into NATO Reinforces Collective Defence
ZAGREB, 14 July 2022 - The adoption of the law on the ratification of the protocol for the entry of Sweden and Finland into NATO is Croatia's contribution to the further strengthening of the alliance and collective defence, Foreign Minister Gordan Grlić Radman said in the parliament on Thursday.
The foreign minister said in his address he hoped that the Sabor would be among the first ones to give its approval for this "historic enlargement".
On behalf of the government, the pertaining protocol adopted in Brussels on 5 July, was signed by Croatia's permanent representative to NATO, Mario Nobilo.
"Croatia actively participates in all policies and activities that contribute to the strengthening of the alliance and collective defence, and this law additionally supports the strengthening of NATO and our collective defence," Minister Grlić Radman told the lawmakers.
The accession of Finland and Sweden to NATO will help the alliance to strengthen its northern and eastern flanks, and will include the whole regions of Scandinavia and the Baltic in the alliance, he added.
Grlić Radman welcomed NATO's open door policy, saying that it contributed to peace and security in Europe.
Commenting on Russia's invasion of Ukraine, the minister said that it had changed the security environment and that the whole of Europe and the world were in a very sensitive and dangerous situation.
"In this extremely complex international political and economic situation, membership of NATO has become more important than ever before."
The Croatian government considers Russia's invasion as an attack on freedom of choice, on international law and on the entire European security structure. Therefore, the interest of Finland and Sweden to join the alliance is fully understandable, said the minister.
The protocols will become effective after the parliaments of all 30 NATO member states ratify them, which Finland and Sweden can expect a formal invitation to join the alliance.
For more, check out our politics section.
Madonna With Child Painting Becomes Permanent Property Of MUO
ZAGREB, 14 July 2022 - The director of the Museum of Arts and Crafts (MUO), Miroslav Gašparović, and art collector Dinko Podrug, on Thursday signed a donation agreement for the Madonna and Child painting, transferring the ownership of the masterpiece by Croatian-Italian master Andrija Medulić Schiavone to the MUO.
During the signing ceremony, Gašparović thanked Croatian American Podrug, an art collector and psychiatrist from New York, for this extremely important initiative for Croatian cultural and art history, "which shows the connection between Croatian culture and Croats all over the world."
He said that this masterpiece by the great late Renaissance painter Andrija Medulić, a native of Zadar who emigrated to Venice, represents a "great qualitative shift and gain" for MUO, the city of Zagreb and Croatia.
"Croatia has not had this category and quality of painting until now. With this donation agreement, Croatia is receiving a work of one of the most important painters of the 16th century, who was the link between Titian and Tintoretto and in a way introduced Mannerism to Venetian painting," said Gašparović.
The story of the Madonna and Child painting with the MUO began in 2017 when it was included in its permanent exhibition through the good offices of Dinko Podrug.
He signed the donation agreement on behalf of the National Federation of Cultural Foundations of Croatian Americans (NFCAFC), headed by Steve Rukavina, after he bought it at the Sotheby's auction house a few years ago .
After receiving a thank you note from Gašparović, Podrug said he immediately realised that, instead of his living room, a better place for the painting would be in a Croatian museum. He originally planned to donate the painting as a gift, but then he decided, with the help of NFCAFC, to establish a mechanism through which other American citizens could also donate paintings to Croatia and obtain a tax deduction for this in the USA. Currently, about a dozen pictures have been donated to that programme, he said.
Gašparović commended this stimulating mechanism and expressed the hope that in the future it will enable similar donations to other Croatian cultural institutions.
He said that this donation is only the first step that heralds a new era for the MUO, which was temporarily closed due to reconstruction after the earthquake and its exhibitions were dislocated. He announced a donation from the Urban family, the mother of photographer Pavo Urban, already for September and a donation from the architects Penezić and Rogin.
"The MUO's holdings will continue to grow, and the museum will remain alive, this is in a way the symbolic beginning of a new era for the MUO," said the director.
The partner of the event is the Croatian Heritage Foundation.
Primorac Will Contribute To Maintaining Macroeconomic Stability, Plenković Says
ZAGREB, 14 July 2022 - Prime Minister Andrej Plenković said on Thursday he was confident that as the new minister of finance, Marko Primorac would contribute to the implementation of the National Recovery and Resilience Plan and to maintaining macroeconomic stability, among other things.
Plenković was speaking at the start of a session of the parliamentary Finance and State Budget Committee on the government's nomination of Primorac for minister of finance.
Plenković said he was also confident that Primorac "will continue the good trajectories that are already visible, namely that we are again rapidly reducing the public debt after meeting all the criteria for euro area membership."
He is confident that Primorac will keep Croatia in the investment-level credit rating, that, in cooperation with other ministers, he will look for solutions for a new set of measures that will help citizens weather the energy and food crisis, and that he will propose measures to curb inflationary pressures.
Plenković said Primorac was an expert in his prime with the capacity to deal with crises and a very significant international and academic experience. "I expect him to contribute with his knowledge and creativity to the implementation of the government's programme and to finding solutions to the various crisis situations we are faced with."
Plenković recalled the government's tax and other reforms as a result of which, he said, Croatia would soon have the highest investment rating ever with the world's three biggest rating credit ratings.
He said it was necessary to continue to ease the tax burden on citizens and adopt other measures that would increase economic activity which, he added, have made the Croatian economy resilient to crises.
Plenković said Primorac had cooperated with the Finance Ministry in many tax reform working groups as well as on a financing model for local government units.
Parliament is expected to vote on Primorac's nomination tomorrow.
For more, check out our politics section.
