ZAGREB, 22 Sept, 2021 - The main Zagreb Stock Exchange (ZSE) indices rose for the second consecutive day on Wednesday, the Crobex by 0.61% to 1,957 points, and the Crobex10 by 0.5% to 1,197 points, after dropping by more than 1% on Monday to their lowest levels since the end of July.

With regard to sectoral indices, the industrial index increased the most, by 3.07%, and only the food index saw a decline, of 0.11%.

Regular turnover was HRK 6.44 million, or about HRK 17 million less than on Monday.

The only stock to cross the million kuna turnover mark was Ericsson Nikola Tesla with a turnover of HRK 1.19 million. Its price went up by 1.19% to HRK 1,700 per share.

A total of 37 stocks traded today, with 19 of them registering price increases, 7 recording price decreases and 11 remaining stable in price.

(€1 = HRK 7.495943)

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ZAGREB, 22 Sept, 2021 - Inflation should be taken very seriously because of the criteria for introducing the euro as well as living standards, Finance Minister Zdravko Marić said on Croatian Radio on Wednesday.

Asked if inflation would threaten Croatia's entry into the eurozone, he said next year's budget deficit would again be within 3%, which would mean that the cost of COVID-19 of over HRK 35 billion would be almost totally a one-off.

The public debt-to-GDP ratio is again decreasing this year already, he added.

He said that inflation, one of the criteria for introducing the euro, had become a topic in recent months and that it must be a maximum 1.5% more or less than in the three member states with the lowest inflation.

Croatia's average inflation is somewhat below the EU average but Greece, Cyprus and Portugal still have very low inflation, which affects the formula for calculating the Maastricht criterion, he added.

But even with those three countries combined, he said, Croatia is still within the criteria for introducing the euro.

He said inflation was, first and foremost, affected by energy prices, oil in particular, and that this was reflected in food and construction material prices.

Speaking of fears of price rises after the introduction of the euro, Marić said that at least six months before it was announced that Croatia was entering the area, prices would have to be displayed in both kuna and euro for a year, perhaps longer.

Although the general VAT rate is not expected to be cut upon accession to the euro area, he did not rule out the possibility of cutting VAT on food.

Marić reiterated that Croatia would receive €25 billion from the EU budget in the next seven years, including €6.3 billion for its National Recovery and Resilience Plan, of which a 13% advance "is arriving in a matter of days."

Marić said he was surprised by the success of the tourism season, notably in July and August, but this month also as the amount of fiscalised receipts in tourism this month so far was up 24% from September 2019.

He announced a 2021 budget revision, alongside preparations for the 2022 budget, for mid-October.

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ZAGREB, 22 Sept, 2021 - Prime Minister Andrej Plenković on Tuesday visited Zadar's most famous company, the Maraska beverage producer, accompanied by its new owner, Bosnian entrepreneur Svjetlan Stanić.

The hosts informed the prime minister about the alcoholic beverage plant, where the extract of marasca cherry and walnut is stored in big barrels. Besides the Maraschino liqueur, Maraska is proud of the fact that it is one of the few companies producing the Orahovac liqueur in the old way, from green walnuts. 

"I'm pleased to see that a centuries-long tradition has been preserved and that production will continue in future. I'm confident that with the production of key brands, these traditional products will find their place on the domestic and foreign markets," Plenković said.

He congratulated the Stanić Group, which recently bought Maraska, on the 20th anniversary of the alcoholic and soft drink factory. "It's an excellent move for branding Zadar and Croatia, for contributing to investment from Bosnia and Herzegovina in Croatia and from Croatia in Bosnia and Herzegovina and, it seems, it's a great signal for new investment which will advance production."

"On behalf of the government, I welcome this investment in Zadar, which has had a great tourism season, which is quickly recovering after the COVID crisis," Plenković said.

Stanić Beverages, a company owned by the Stanić Group, signed a contract on the purchase of Maraska with Saponia and Koestlin, members of the Mepas Group. Stanić Beverages now owns 98.25% of Maraska shares, having bought 45.3% from Koestlin and 52.90% from Saponia. It will also make a binding public offering for the rest of the stock after the completion of the transaction with Saponia and Koestlin.

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ZAGREB, 21 Sept, 2021 - The main Zagreb Stock Exchange (ZSE) indices rebounded on Tuesday, with the Crobex increasing by 0.31% to 1,945 points and the Crobex10 by 0.11% to 1,191 points.

Turnover at the close of the trading session was HRK 23.6 million, about 5.1 million higher than on Monday.

The highest turnover, of HRK 18.3 million, was generated by the Podravka food company, the most liquid stock in the last four days. Its price remained stable at HRK 600 per share.

No other stock passed the turnover mark of one million kuna.

A total of 36 stocks traded today, with 17 of them registering price increases, 8 recording price decreases and 11 remaining stable in price.

(€1 = HRK 7.500499)

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ZAGREB, 15 Sept, 2021 - The INA oil company said on Wednesday it was considering issuing bonds on the domestic capital market in the nominal amount of HRK 2 billion maximum, with one-off principal maturity after five years maximum.

The Board today decided to issue the bonds and list them on the Zagreb Stock Exchange.

The issuing and the listing will be done provided that all regulatory permits are obtained in line with regulations and subject to acceptable market conditions.

INA hired Erste & Steiermärkische Bank, Privredna Banka Zagreb and Raiffeisenbank Austria as the issue agent.

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ZAGREB, 15 Sept, 2021 - The main Zagreb Stock Exchange indices fell mildly on Wednesday amid a modest turnover.

The Crobex weakened by 0.12% to 1,969 points while the Crobex10 dropped by 0.10% to 1,203 points.

The transport sector index fell the most among sector indices (-1.86%) while the construction index registered the highest increase (+0.18%).

Regular turnover amounted to a mere HRK 4.9 million or about 3.7 million less than the day before.

The only stock to cross the million kuna mark was the HT telecommunications company generating a turnover of HRK 1.45 million. The prices of HT shares dropped by 0.26% and closed at HRK 189.50.

Thirty-seven stocks traded today, with 12 gaining in price, 15 losing, and 10 staying the same.

(€1 = HRK 7.474887)

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ZAGREB, 15 Sept, 2021 - Europe's industrial production recovered in July 2021 but Croatia was among the EU countries with the largest monthly decreases, an Eurostat report showed on Wednesday.

In July 2021, the seasonally adjusted industrial production rose by 1.5% in the euro area and by 1.4% in the EU, compared with June 2021, when industrial production fell by 0.1% in the euro area and remained stable in the EU.

In the euro area in July 2021, compared with June 2021, production of non-durable consumer goods rose by 3.5%, while in the EU it rose by 2.8%.

Capital goods went up by 2.7% in the euro area and by 2.4% in the EU, and intermediate goods by 0.4% in the euro area and by 0.5% in the EU, while energy production was stable in the EU and fell by 0.6% in the euro area.

Among member states for which data are available, the highest monthly increases were registered in Ireland (+7.8%), Belgium (+5%) and Portugal (+3.5%). The largest decreases were observed in Lithuania (-2.0%), Slovenia (-1.8%) and Croatia (-1.6%).

In July 2021 compared with July 2020, industrial production increased by 7.7% in the euro area and by 8.3% in the EU.

In the euro area in July 2021, compared with July 2020, production of intermediate goods rose by 11.2%, nondurable consumer goods by 10.1%, durable consumer goods by 9.8%, capital goods by 5.9% and energy by 1%.

In the EU, production of intermediate goods rose by 11.8%, non-durable consumer goods by 9.4%, durable consumer goods by 8.9%, capital goods by 6.3% and energy by 2.7%. 

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ZAGREB, 14 Sept, 2021 - The main Zagreb Stock Exchange (ZSE) indices went up on Tuesday, the Crobex by 0.15% to 1,971 points and the Crobex10 by 0.16% to 1,204 points, with regular turnover reaching HRK 8.6 million.

The most traded stock was the Podravka food company, turning over a little more than HRK 3 million. It closed at HRK 596 per share, down 0.33%.

The ordinary share of the Adris tourism and insurance group turned over HRK 2.7 million, closing at HRK 470 (+2.17%), while its preferred share turned over HRK 1.09 million, closing at HRK 417 (+0.48%).

Thirty-six stocks traded today, with 14 gaining in price, 11 losing, and 11 staying the same.

(€1 = HRK 7.483597)

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ZAGREB, 8 Sept, 2021 - The main Zagreb Stock Exchange indices weakened on Wednesday amid a very modest turnover, with the most traded stock being that of the Plava Laguna hotel chain.

he Crobex fell by 0.41% to 1,954 points while the Crobex10 fell by 0.3% to 1,200 points.

The construction sector index recorded the highest increase among sector indices, of 1.91%, while the food sector index decreased the most, by 0.22%.

Regular turnover amounted to HRK 4.6 million or about 600,000 less than on Tuesday.

Not one stock crossed the million kuna mark in turnover.

The most liquid stock was the Plava Laguna hotel company with a turnover of HRK 567,000. The price of its shares remained at HRK 1,620.

Forty-one stocks traded today, with 10 gaining in price and 20 falling, while 11 remained stable.

(€1 = HRK 7.484807)

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ZAGREB, 8 Sept, 2021 - Finance Minister Zdravko Marić said on Wednesday a solution to current account overdrafts was expected in the days or weeks ahead and that it remained to be seen if the law would need to be amended.

He was speaking to the press after Prime Minister Andrej Plenković's meeting with representatives of banks' management boards, which was also attended by central bank (HNB) governor Boris Vujčić and Economy Minister Tomislav Ćorić.

Marić said the purpose of the meeting was to exchange information and views on current account overdrafts with a view to finding an adequate and satisfactory solution in which, he added, the government emphasised consumer protection.

He said several good proposals crystallised at the meeting, aimed at protecting social sensitivity, fairness, information and transparency as well as at reaching a solution under which authorised overdrafts would again dominate, as they are regulated by law in much more detail, much more clearly and transparently than tacit overdrafts.

The 2010 Consumer Credit Act recognises authorised and tacit overdrafts, but since 2018 the latter have become prevalent, accounting for almost 95% of all overdrafts, Marić said. Tacit overdrafts have been approved for almost 1.8 million consumers and are being exercised by 840,000.

That happened because under a central bank decision from the end of 2017, pursuant to European regulations, the calculation of the effective interest rate includes the fee for having a current account. As a result, authorised overdrafts became less available to lower income citizens and banks switched to tacit overdrafts.

Marić said a solution should be prompt but not rushed and to the benefit of all consumers. He told people living with tacit overdrafts that the government did not intend to nor would support a solution that would result in a drastic cancellation of overdrafts because that would put additional pressure on their everyday lives and livelihoods. "We'll dispel all fears that this instrument will be annulled and disappear."

A solution may be found by changing the decision within the central bank's remit, but if necessary, the law will be adjusted, he said, adding that if the former option was chosen, that would be known in the next few days, and in case of the latter, in the next few weeks. "We are really not talking about months."

The minister said it was necessary to continue to work on people's financial literacy as well as on product transparency.

Vujčić: The goal is that lowest income citizens don't lose current account overdraft option

The central bank governor said that since Croatia was the only country limiting effective interest rate on overdrafts, the inclusion of the current account fee in the rate as of 2018 resulted in the fee "swallowing" interest, primarily on small overdrafts.

He said that, for example, no interest was paid on overdrafts up to HRK 2,000 and a current account fee of HRK 12.

"We have several different regulations which produce such results and that should be put in order, so that for those with the lowest incomes, and consequently overdrafts, those products don't become unprofitable for banks and they start cancelling them."

Vujčić said the point was to return tacit overdrafts under the same regulations that applied to authorised overdrafts, without a certain number of people with the lowest incomes losing the overdraft option in the process.

"That's the point and that's what we'll do," he said, adding that it remained to be agreed on how to do it.

Croatian Banking Association (HUB) director Zdenko Adrović said that representatives of the banking sector spoke at the meeting about practices in other European countries, expressing hope that the new solution would be in line with those practices.

He stressed that there was no cap on the effective interest rate in other countries, so one of the proposals presented was for the cap on the effective interest rate to be removed and a cap on the nominal interest rate to be possibly introduced.

Adrović said that one of the proposals was for costs related to current account overdrafts to be calculated at "a slightly higher minimum amount", but noted that this was a technical solution that still had to be discussed with the HNB.

Asked by reporters how citizens would now be able to trust banks after they had switched their authorised overdrafts to tacit ones, Adrović claimed that everything was done in line with the law and that authorised and tacit overdrafts were two equal products.

He said that he "assumed" that a "vast majority" of citizens had been informed by their banks about tacit overdrafts, but that a large number of citizens, including himself, "relatively rarely" read notices about possible changes.

Marić: No reduction of VAT on food in 2022

Asked is VAT, including on food, would be lowered considering current price hikes, Finance Minister Marić said that the government had already reduced the VAT rate on some food products, including fresh meat and fish, and fruit and vegetables, and that it planned to reduce VAT on all food products during the current term in office.

But that will happen only after the necessary conditions are met, he stressed, noting that currently and in 2022 there was no fiscal room for such a move.

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