News Feature

Croatian bank holds interest rates

30 December 2008

Croatia's largest bank has revealed it will keep interest rates on loans steady, which may interest those considering buying Croatian property.

Zagrebacka Banka said it will not raise the cost of borrowing after undergoing consultation with the government, according to Reuters.

On Monday (December 29th), the bank claimed it would increase interest rates on its loans by between 0.5 and 1.7 per cent - before revealing today that no raises will be made.

Zlatko Mehun, a spokesman for the Croatian government, told the news provider that the consultation with the bank was aimed to preserve standards of living in the country.

He explained: "Our intention is not to influence business policy of the bank or monetary policy as such, but to participate in reconsidering of economic effects of higher interest rates."

Earlier this month, Paul Collins, property editor of BuyAssociation, applauded the Croatian government for reducing the red tape which was applied to foreign investors looking to buy property in the country.

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