Home » Business » Capital Leaving Croatia – Banks Send €1.5 Billion Offshore

Capital Leaving Croatia – Banks Send €1.5 Billion Offshore

Banks in Croatia have shipped out 11.7 billion kuna (1.5 billion euros) from the country in the first eight months of 2012. The considerable capital outflow has gone in two directions – close to a billion to service foreign debt, and more than half a billion has gone off shore to increase foreign activity.

In recent years, the debt of Croatian banks has increased annually by 7 to 8 billion kuna (1 billion euro), and now for the first time, banks are focusing on paying the debt back. With foreign activity, it is not just the classic giving out  loans abroad, but also there has been growth in deposits.

“Industry is in decline, manufacturing is the lowest it has been in the last five years. Soon as there is no production, there is nobody taking credit and the money goes off shore.” warns experts, saying that if there is nowhere for the capital to go at home, then overseas is the only logical move.

Share on:
0 / 5 (0 votes)

Sign up to receive the Croatia Week Newsletter

Related Posts

[PHOTO] 5-Star Resort Project on Island of Brač

A multi-million euro investment is set to see a 5-star resort built in the new tourist zone of Luke Bay located between Pučišća and Povlja on the island of Brač. The 5-star resort will span over 170,000 square metres and have 700 beds. According to Poslovni.hr the resort is set to open up 145 jobs...

ECA Aim to Resume Seaplane Operations in Croatia in 2018

Seaplane operators European Coastal Airlines (ECA), who suspended all operations in Croatia in 2016, just two years after their first flight, have stated that they aim to be back connecting Croatian islands with the mainland in 2018. “ECA and the seaplanes project on the Adriatic coast is currently in the restructuring phase in the pre-trade...

[VIDEO] Take a Tour Inside New Zagreb Airport

The media were today invited for a tour around the brand new Franjo Tuđman International Airport in Zagreb just days before the official opening. The new passenger terminal will have its official opening on 21 March 2017, before opening for traffic on 28 March 2017. The new 313 million euro-terminal, which has taken three years...

New Zagreb Airport Guide

Tomorrow, on 28 March 2017, the brand new Franjo Tuđman International Airport in Zagreb opens to the public. The new €313m terminal, which had its opening for shareholders and guests last week, has taken three years to build and spans 65,000 square meters on four levels. It will finally be open for traffic tomorrow. As...

Baggizmo Wiseward – Unique Smart Wallet from Croatia

Advanced technological innovation in Baggizmo Wiseward smart wallet provides multiple security of your property. Baggizmo, a popular start-up, has launched its second Kickstarter campaign. This time it is for a technological product – Baggizmo Wiseward smart wallet. The wallet is specially designed to improve the security of credit cards and protect personal documents using integrated...

Lufthansa Launch First Frankfurt – Pula Service

Germany’s largest airline Lufthansa launched a new service between Frankfurt and the Croatian city of Pula on Friday. The inaugural flight, an Embraer 190 aircraft, touched down in Pula today, with all passengers on board the aircraft receiving gifts from Lufthansa. Lufthansa will use a Bombardier CRJ 900 aircraft between the two cities twice weekly,...